The Employee NPS is baloney. Track this instead.

How many employees got referred by a colleague or former employee.

That’s it. The employee NPS is designed to help companies track employee engagement and measure the impact of their people and culture initiatives.

It uses the question:

How likely are you to recommend us as a place to work for your family and friends?

But it measures people filling in a survey. What’s more interesting is to measure how many people are actually referred and hired because the company is recommended by a friend because they themselves enjoy working there.

3 things you can implement tomorrow to increase the referral rate.

#1

Let people know that you are hiring. Often people don’t even know that the company is hiring for certain roles. Information flow is key. Send out an email, include it in the stand-up, put vacancy board in Notion for everyone to see.

#2

Make it part of performance. Bringing in new people is such an important part of the business that it shouldn’t only be the job of HR. It is the job of all of us. I’m not saying a medior developer can not become a senior if she never refers anyone. I’m saying it’s valuable if a medior developer brings in a great new dev. It starts with showing that the company values this.

#3

Keep them in the loop. If you get a referral, which is the best way of recruitment there is, treat it with respect. Update your colleague on where their friend is in the interview process and share information.

Mind that I didn’t mention a direct monetary incentive. It’s nice if you can offer that, yes, but it shouldn’t be the main incentive. I’ve seen companies that pay big bonuses and people would send over CV’s of everyone they knew that has a heartbeat and can look straight.

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