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Trends in Employee Referral Plans

CASE FLYER, HUMAN RESOURCE MANAGEMENT
ET Cases, 4 pages

Case Preview

Trends in Employee Referral Plans

 

Expected Learning Outcomes

• Understanding the significance of employee referral schemes in talent management
• Identifying the suitability of employee referral schemes
• Analyzing the advantages and disadvantages of employee referral schemes

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I. The Role of Referrals in Talent Management

1. What do you understand by a referral scheme? What are the possible areas where referral schemes are adopted for enhancing respective business objectives? Recounting your experiences from childhood about recommendations/suggestions, what is your take on referrals?
2. Why do you think companies resort to employee referrals?
3. The base article refers to external employee referrals (by those who are not employees of the company). What is your assessment of this practice?
4. The base article points out that, “Companies, from startups to old brick-and-mortar giants, are going innovative on rewarding staff who bring potential employees from their networks. Cash rewards are still around but out of fashion, and iPads and iPhones are among the most common prizes.”

  • a. What is the financial viability of doling out such expensive gifts to recruit people vis-à-vis other modes of recruitment?
  • b. Why do you think employee referral schemes score over all the other modes of recruitment?

 

5. ...............................

Teaching Note Preview

Trends in Employee Referral Plans

 

Synopsis

This Case Flyer enables a lively discussion on employee referral schemes as one of the popular trends in talent management of late. Suitable for understanding the outside sources of candidates, in the ‘Human Resource Planning and Recruiting’ module, the Case Flyer helps identify the ideal circumstances for employee referral schemes at organizations. It highlights the prevalence of employee referral schemes, among the startups in particular, to source niche talent quickly. It helps debate on the pros and cons of employee referral schemes and analyzes the ways in which such schemes can be a better recruitment platform than the traditional recruitment practices. It, however, poses the dilemma if employee referral schemes would enhance or diminish employee loyalty. Also, the Case Flyer argues if it would promote any wrong behavior among the employees.

Suggested Reading for the Faculty

  • • “A Report from the SHRM® Survey Program”, SHRM® 2001 Employee Referral Program Survey, Society for Human Resource Management, 2001

 

Before the Case Flyer Discussion in the Classroom

The participants were asked to read the chapter given as mandatory reading at the end of the Case Flyer to enable them to participate effectively and to enrich the learning outcomes.

Positioning and Setting

The Case Flyer can be used to understand the concept of ‘Employee Referrals’ as an outside source of candidates in the ‘Human Resource Planning and Recruiting’ module of Human Resource Management course.

Suggested Orchestration

During the Case Flyer Discussion in the Classroom

The discussion on the Case Flyer was conducted under three broad topics [Exhibit (TN)-I]. The classroom analysis of the Case Flyer was carried out by discussing the questions of the Case Flyer sequentially. In each section, the participants had an elaborate discussion on one of the questions which formed the ‘anchor point of discussion’ for the given section.............

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Product code: HRM-4-0007, HRM-4-0007A

Abstract


This Case Flyer and the base article1 can be used to understand the importance of referral schemes as a part of scouting for the right talent. Highly suited for discussion on recruitment, this Case Flyer also enables a discussion on the pros and cons of referral schemes. With several startups and established companies doling out several innovative gifts from iPads, iPhones, Harley Davidsons, to sponsoring foreign holidays the referral schemes definitely help to connect with and recruit the right talent. However, many question if employee referral schemes end up promoting an inappropriate behavior among the referring and referred employees. How would employee referral schemes impact employee loyalty? Why are employee referral schemes relatively popular amongst younger employees, than the older employees? Why are employee referral schemes encouraged more in startups?



Pedagogical Objectives

  • To understand the role of referrals in finding the right talent for companies
  • To examine when and where the employee referral schemes should be encouraged and promoted
  • To discuss and debate on advantages and disadvantages of employee referral schemes

Positioning and Setting

The Case Flyer can be used to understand the concept of 'Employee Referrals' as an outside source of candidates in the 'Human Resource Planning and Recruiting' module of Human Resource Management course.


1 Devina Sengupta and Anumeha Chaturvedi, 'Industry Goes Innovative with Staff Referral Plans; Offers Attractive Rewards', http://articles.economictimes.indiatimes.com/2014-10-31/news/55631734_1_referral-cash-rewardsrecruitment, October 31st 2014, (accessed date: November 25th 2014)



This Case Pack Includes:
- Abstract
- Case Flyer
- Teaching Note (**ONLY for Academicians)
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