For most organizations, employee referrals are one of the most crucial sources of hiring. The employee referral program is an essential activity that helps companies attract the right talent. The process of finding qualified candidates through referrals, though, can be inefficient and time-consuming. To make it more efficient, companies can use employee referral software to streamline the process.
Employee referral software helps organizations manage their referrals more effectively by enabling employees to follow up with prospects after they submit their applications online or by submitting their resumes to a company’s database.
Employee referral software also sends automatic emails to employees who have referred a candidate, informing them of the position’s qualifications and inviting them to interview the applicant. Additionally, the software tracks each candidate through the recruitment process and informs employees if they are selected for an interview.
Employee referral software can help companies discover hidden talents. Referrals, unlike job boards or other recruiting channels, are often authentic and have a high conversion rate. According to an ADP study conducted by Bersin & Associates, referred applicants are the top performers across various categories, including talent acquisition efficiency.
Employee referral software can also help companies by bringing more diversity into the workforce. Most companies struggle to diversify their workforce, but employee referrals can help them target a broader range of candidates. 68% of those surveyed by Achievers said they would recommend new job openings to friends and colleagues. The survey also revealed that the average employee referral yields 40% more diverse hires than other recruiting strategies.
By using employee referral software, companies can also reduce the time and effort needed to manage referrals as it provides an automated, step-by-step approach to sourcing and tracking new hires.
Employee referral software can improve efficiency in several areas. The following are some of the common benefits of using employee referral program software.
Referred candidates are more likely to be hired than those who come from job listings or other sources. By utilizing software to manually check the candidate’s qualifications, organizations can streamline the recruitment process and avoid hiring candidates with less-than-stellar resumes.
With the software, organizations can send automatic emails to employees who have referred a candidate about their qualifications for the job. This helps improve communication between employees, which reduces the possibility of miscommunications.
With employee referral software, organizations can notify candidates of scheduled interviews, informing them that they’re being considered for a position. This helps eliminate wasted time for both applicants and companies.
Because referred candidates are already known to employees, it takes less time for human resource departments to look into their backgrounds and set up interviews. Organizations that utilize employee referral software can hire qualified candidates more quickly than organizations that don’t use the technology.
Organizations that use employee referral software get referred candidates who are familiar with the company and its culture, reducing the time spent on training new hires. This helps improve the candidate experience.
Because employees are the ones referring applicants, the company’s brand is synonymous with them. This helps maintain a positive image for an organization, which attracts top talent.
Because there’s no need to pay for advertisements or other sources of candidate referrals, companies that use employee referral software can save money on recruitment expenses. Additionally, the software enables HR departments to focus on more qualified candidates.
Employee referral software is designed with specific features to make it user-friendly and enable organizations to more efficiently manage employee referrals. The following are some of its common features.
Employee referral software allows companies to schedule interviews for referred candidates, which saves human resources time and effort.
Employee referral software sends automatic emails to employees who have referred a candidate about the application, communicating the job requirements and inviting them to interview. This helps streamline the process and send emails only when necessary.
With employee referral software, companies can create templates that include job descriptions and the necessary requirements needed for the position. This helps ensure that employees who submit referrals meet the minimum qualifications.
The software has a built-in ranking system that increases the likelihood of candidates being hired and improves communication about their status.
Employee referral software enables companies to design custom career pages for each position. These pages can include job requirements, salaries, and information about the company culture.
As part of the employee referral software, organizations can track trends in their employee referrals and manage them accordingly. This enables them to trigger targeted communication during times when employees are more likely to refer candidates.
Employee referral software comes with an integrated employee database that tracks employee referrals and other online job applications. This helps streamline the recruitment process.
Employee referral software enables employers to analyze referrals, showing the demographics of referred candidates and other metrics. This helps improve the hiring process.
When choosing employee referral software, organizations should consider a number of factors to determine whether a software solution is ideal for them. Along with that, they should take a closer look at their requirements and budget as well.
The following are some things to do or factors to consider when opting for an employee referral software application.
Choosing your company's Employee and Job Referral software is a complex process. To help HR departments compare and benchmark all Employee and Job Referral software, we have selected a list of 15 companies providing SaaS tools for HR.
Employee and Job Referral software is often combined with other HR functionalities. If your company is in need of complementary HR features, make sure to take a look at those frequent combinations:
An employee referral program is a program designed to facilitate the process by which employees refer candidates. When employees refer candidates, they receive incentives, either financial or non-financial, for their time and effort. Alternatively, some employee referral software companies pay employees who refer candidates to the company.
Employee referrals are an effective way for organizations to discover talent that they might not have found on their own. An employer referral program can lead to cost savings by sparing HR departments from expensive recruitment strategies like job postings and advertisements.
Employee referral software applications are designed to help companies manage their employee referral programs. They can be tailored to specific organizations to streamline the process of identifying candidates and tracking referrals.
The goal of an employee referral program is to increase the number of applicants who are hired by actively recruiting employees who know more about prospective candidates than recruiters or HR departments. Most employee referral programs utilize some kind of incentive system that allows employees to refer candidates, either financial or non-financial, for free. Once a candidate has been referred, they are sent information about the company’s job openings.
Most people believe that an employee referral program is an inefficient way to recruit top talent. However, the truth is that employee referrals represent a very efficient way of finding qualified candidates. The average cost of filling an open position is about $12,000 according to the 2015 Report on Employee Referral Programs, released by Towers Watson. By comparison, the cost of recruiting a single candidate through an employee referral program is roughly three days at $1,000 per candidate—less than 10% of the cost to fill a position through traditional recruitment methods.
Organizations that wish to implement an employee referrals program must first establish their requirements and then evaluate software vendors to find the best employee referral software application. With regard to requirements, they should determine how much time and effort they want their employees to spend on referrals. They should also clarify how many employees they wish to opt-in for the program and how many of those employees need to be referred by a friend or existing employee.
The right employee referral software application is key to ensuring the success of an employee referral program. There are a number of factors that can make or break an employee referral program.
The culture of the organization must support an employee referral program. If it is not, employees will not want to participate in a program that requires them to spend a significant amount of time and effort on referrals. Employee referrals should be allowed and incentivized in a manner that makes sense for both employers and employees.
Employees help in filling in open positions and in staffing new locations. They know the culture of the organization and can share their knowledge with prospective employees to help them fit into that same culture. The best employee referral program is one that provides incentives for employees as well as employers to remain active participants in the program.
An employee referral portal is a website that facilitates the process by which employees refer prospective employees for jobs. It allows employees to post resumes and share information they know about prospective candidates with recruiters and HR departments.
According to a 2014 survey conducted by Towers Watson, companies that have an employee referral program fill approximately 20% more job openings than companies that do not have a program.
The biggest benefit of using an employee referral software application is streamlining the process of identifying candidate referrals. An effective employee referral software application allows employees to refer candidates all at once and review the progress of those referrals at their convenience.