Incentive Referral Programs – Are They Worth It?

Wednesday December 7, 2022

Keeping good talent is hard work. Hiring new talent is even harder. 59club USA – in partnership with 59club Study – conducted a survey of 67 private club managers on the effectiveness of their recruitment tools with regard to hiring new, non-management staff. The results are interesting.

Most clubs employ the standard practice of creating and populating a “careers” page on the club website, but without putting money towards advertising the page, the number of visitors is extremely low. Of the 67 participants in the study, seven said social media is their main recruitment tool. Makes sense when you consider how much Meta (formally Facebook) has invested in their employment marketplace. The majority of participants (47%) selected “specific online tools” as their recruitment vehicle of choice. Again, not surprising. Ziprecruiter and others changed the hiring game decades ago and have enjoyed monumental success – to the point of some companies even purchasing stadium naming rights.

But of the private club operators surveyed, only 30% of participants say they employ a referral program. And NONE said they offered an incentive program. With unemployment at a 20-year low, and one participant saying “all recruitment is extremely challenging for us,” and another operator stating “our members are our best recruitment tool,” why would those operators not offer a time tested program? There seems to be a disconnect.

Here are a few reasons to try out an incentive-based recruitment program at your club:

Employees who refer their friends or colleagues are more likely to refer individuals who are a good fit for the company culture and values. These individuals are already familiar with the company’s work environment and are likely to be a better fit for the team. This can lead to higher retention rates and better overall job satisfaction.

Another reason employee referral programs are successful is because they often result in faster hiring. Employees who refer their friends or colleagues are usually able to provide a strong recommendation, which can expedite the hiring process. This is especially important for companies that are looking to fill a position quickly.

In addition, employee referral programs can also be cost-effective. Traditional recruitment methods, such as posting job ads and using recruiting agencies, can be expensive. By relying on employee referrals, companies can save on these costs while still attracting high-quality candidates.

Finally, employee referral programs can also help companies improve their employer branding. When employees refer their friends and colleagues, it sends a message that they are happy and satisfied with their job. This can help attract more top talent to the organization.