Employee referrals preferred by India Inc

Some good stats from India's Business Line: http://www.thehindubusinessline.com/2008/07/17/stories/2008071752330400.htm

As India Inc takes a prudent view of the economics of running a corporation, the axe is increasingly falling on rising recruitment costs.

Referral Stats Roundup

Perot Systems: - (As of July 2008)48 per cent of hires in last three months have come from employee referral programmes. 28 per cent prior to that
- Agency usage reduced from 32 per cent to 13 per cent of our needs
Dr Pallab Bandhyopadhyay, Vice-President and Head of HR for Asia Pacific, at Perot

India employee referral bonus generally Rs 25,000- 50,000
Agency fee would be around 10-12 per cent of the hired person’s CTC = company ends up paying almost three times more to a recruitment firm than they would to the referring employee.

EMC India Centre of Excellence: 35-40 per cent of the workforce comes through employee referral programmes.

Intuit Technology Services Pvt Ltd: hiring through employee referrals is around 25 per cent of its total annual recruitment, while about 10 per cent comes through direct sourcing (company portal), 20 per cent through campuses and the rest through recruitment firms.