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149 CHAPIR. PERSONNEL PLANNING AND RECRUITING Referrals and Walk-ins Employee referral campaigns are a very important recruiting option. Here the employer posts announcements of openings and requests for referrals on its website, bulletin boards, and/or wallboards. It often offers prizes or cash awards for referrals that lead to hiring. For example, at health-care giant Kaiser Permanente, referring someone for one of its "award-eligible positions" can produce bonuses of $3,000 or more." The Container Store trains employees to recruit candidates from among the firm's customers Referral's big advantage is that it tends to generate "more applicants, more hires, and a higher yield ratio (hires/applicants)."!20 Current employees tend to provide accurate information about their referrals because they're putting their own reputa- tions on the line. And the new employees may come with a more realistic picture of what the firm is like. A SHRM survey found that of 586 employer respondents, 69% said employee referral programs are more cost-effective than other recruiting prac- tices and 80% specifically said they are more cost-effective than employment agen- cies. On average, referral programs cost around $400-$900 per hire in incentives and rewards 121 If morale is low, address that prior to asking for referrals. And if you don't hire someone's referral, explain to your employee/referrer why you did not hire his or her candidate. In addition, remember that relying on referrals might be discriminatory where a workforce is already homogeneous