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ARAG: 55% of candidates referred for sales positions are recruited

ARAG is Germany's largest family-owned insurance company. With customers in around 20 countries, it's also one of the top three legal protection players in the world. ARAG has been working with CleverConnect since 2017 to deploy and manage its digital referral program. Read about the project and the results with Dimitry Tartakowski (Talent Acquisition & Employer Branding Manager).
ARAG: 55% of candidates referred for sales positions are recruited

Today, almost 37% of ARAG's 3,000 employees and partners are registered with the "Einstellungssache" referral program (in English: “A matter of attitude”). The hiring rate for referred candidates is around 25%, and as high as 55% for sales positions. ARAG's ability to capitalize on its own employees' networks enables the company to improve the performance of its recruitment team in order to achieve its objectives.

How do you explain the success of your referral program for sales & logistics profiles?

As the program's name suggests, its aim was to boost our recruitment activities with an additional channel, but above all it was to generate employee commitment. The attitude with which they actively participate in consolidating ARAG's global team contributes to the program's outstanding success, particularly in sales and distribution.

We owe much of this success to the fact that our employees in this sector are extremely well connected and know how to activate their network.

Before digitizing your referral program, how did you manage employee referrals? 

We didn't really have a standard process. Employees approached the HR team, telling them they knew someone - and referred candidates also mentioned this on their applications. There were no bonuses. We realized then that the potential existed. 

Since we launched "Einstellungssache", the referral rate has risen massively, and the referral concept has become a very natural one for our employees. Our new process, defined thanks to the CleverConnect tool, ensures greater transparency and a fairer way of rewarding, via a bonus. For us, it's a win-win situation. We pay the bonuses, and many of our employees actively promote our open vacancies via "Einstellungssache" in their private networks. This brings us more than we spend.

👉 Accelerate your referral strategy with a digital referral program

How did the implementation of your digital referral program go?

CleverConnect provided us with excellent support during the project phase. The setup followed a precise, well-controlled schedule. The interface implementation was a little more complex, but the partnership between our IT teams and the CleverConnect experts enabled us to overcome the technical difficulties.

The launch also required some creativity! Together with our marketing department, we launched an internal communications plan to raise awareness of our referral program.

For us, as project managers, it was a very stimulating period! We couldn't necessarily influence the technical side of it, but we were able to bring many ideas concerning the development of concepts and actions to facilitate adoption.

When you introduced your referral program to your employees, tell us how things went?

CleverConnect shared with us many best practices regarding our program's promotion; in particular, how other companies have managed their launch and the internal appropriation phase.

We took inspiration from this to set up a perfectly adapted communication strategy for ARAG employees. Here are a few steps:

  • finding the perfect name for our program
  • presentation of the program to several target groups during internal meetings (managers, employees, distribution partners, etc.).
  • organization of a kick-off event with advertising posters, goodies and publication of program information on our intranet
  • creation of our own video to explain the registration process to employees

Our aim was to ensure the highest possible registration rates during the ramp-up phase.

Your referral program is directly linked to your ATS: what are the benefits of this integration?

This connection enables us to publish new job offers for referrals on the CleverConnect tool, directly from our ATS. At the same time, all referral applications are automatically uploaded to our ATS with the appropriate tags.

When we changed our ATS, the connection was made quickly and easily. CleverConnect was already familiar with our new tool's interface and our requirements were quickly implemented. This integration makes administration easier, as we can process all sources of applications in our ATS, including those from referrals. Employees benefit too: thanks to this connection, each recruitment resulting from a referral can be allocated very smoothly to the employee, who is automatically rewarded with the corresponding bonus.

👉 Accelerate your referral strategy with a digital referral program

What recruitment targets have you achieved with your digital referral program?

Our hiring rate is exceptional, which confirms that we have chosen the right path by working with CleverConnect. But we can do even better! 

In the coming months, we plan to communicate internally more intensively on the program. This will involve gamification. Our aim is to motivate all employees, whether they have already taken part in the program or not.

Advice: when launching a referral program, what should companies look out for?

When we look back, we're very satisfied with the project's execution. If we had to go back, we'd only make a few minor adjustments.

There is one condition for implementing CleverConnect's digitalized referral solution: referral must be a matter of internal interest

At ARAG, our employees and partners had already been acting as referees for many years. However, there was no official program. We realized that referral had a lot of potential, so we decided to give it a real framework, with innovation and rules for greater transparency.

Involving ARAG's managers from the very beginning made a lot of sense; we convinced them of the importance of the program for attracting new employees. 

The cornerstone of this referral concept is that it's fully integrated into the corporate culture. Whether a company operates with bonuses or playful referral challenges ultimately depends on its culture.

In any case, good internal communication (and even publicity) from the "kick-off" ensures a high registration rate and rapid success. But referral is also a long-term process, requiring recurrent and regular communication over the years.

👉 Accelerate your referral strategy with a digital referral program

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