It’s no secret: Employee referral programs can greatly help your organization find and hire top talent. After all, where best to find potential new employees than by tapping into current workers, who share your firm’s values and who are already helping you run a successful business? However, securing talent through a strong referral program doesn’t just help you hire strong new employees. It can also be a powerful tool to help you promote your employer brand.

These types of initiatives are an extremely powerful tool that can help you attract strong talent into the recruiting process. When applied consistently, employee referral programs can also be a great retention tool that translates into huge costs savings on recruitment and investment in employees over time.

What does an effective employee program entail and how can you start one at your company?

1. Give employees the tools they need to refer: This can mean putting together a positive culture around employee referrals and being able to track these efficiently so that you can effectively review the entire referral workflow.

2. Set expectations and guidelines: Make sure employees understand the referral program’s guidelines and expectations, including who is eligible to participate in the program and receive rewards for referrals. Also be sure to include EEOC language to make it clear that the referral program is not discriminatory in any way.

3. Provide incentives: Ideally put into place monetary inducements (if someone gets hired and stays for a set period of time). Make sure these incentives are paid in a predictable, timely, and public manner. Other guidelines to follow include holding leaders accountable and being transparent throughout the process with employees by providing feedback.

So, what are the specific ways referral programs can help?

First, a strong referral program, as noted above, includes clear expectations, guidelines, and a powerful marketing plan of action. As a result of this communications push, employees will know in-depth how to speak with former co-workers and friends who they want to refer. This strong professionalism instantly makes your company look like a worthy organization and one that many will want to join because of this, leading to increased interest.

Second, your company should be investing heavily in communications and online content to promote your employer brand on your website, social media platforms, public relations, and through other promotional materials. As a result, people will covet the chance to be referred and interviewed because they’ll know even more about the company.

An employee referral program is a win-win situation for you and your organization. You’ll be creating both a commitment to hiring the best people as well as an employer brand that truly harbors growth. This will also signal to your firm’s clients and other external stakeholders that your organization has robust systems for attracting the talent that will drive performance, further establishing confidence in your products and services, and ultimately a more successful business.