Employee referral programs remain to be the unsung heroes of recruitment strategies. Even though job boards and recruiters have their place, tapping into your current workforce to hire people who have been verified can yield surprising and impactful results.
And with what modern tech offers, you can now take advantage of direct hiring platform with referral featuresto ease how you do things. In this simple guide, we examine why employee referral software matters.
Boosts Employee Engagement
When you decide to build an employee referral program, you’re not just merely improving recruitment, you’re also boosting morale. Employees feel valued when their opinions matters and a significant chunk of them are willing to recommend talent to help their company. This level of involvement helps foster a stronger connection to your organization.
The good thing with referral programs is that they encourage collaboration between your team. Take Canva, as an example, which uses its employee referral programs to promote diversity. Always remember to recognize and reward employees for successful referrals. This small gesture can go a long way in keeping your team engaged.
Reducing Hiring Costs
Hiring can be expensive for many organizations. You need to learn how to know if someone will succeed in your team not to mention how to interview someone so you get a great hire. All these require time and resources. Things tend to be somewhat different when you decide to leverage employee referral software for managers.
After all, employee referral platforms help ensure you cut costs significantly. Traditional recruitment methods, like external agencies and job ads, can cost thousands of dollars per hire. In contrast, referrals typically cost around $1,000 per hire, saving your thousands of dollars.
Moreover, referrals lead to better retention rates. This means fewer resources spent on rehiring and training. Additionally, referred employees generate 25% more profit for their companies, making referral programs a smart financial decision. By investing in the right simple employee network referral tools, you can reduce costs while building a stronger, more committed workforce.
As you can see, there is a lot more to leveraging a referral tracking software than it seems. It you desire to learn how to hire the best people without strain, then these tools will surely come to your aid. By using employee referral platforms, you can tap into a pool of candidates who are pre-vetted and ready to contribute. It’s a win-win for both you and your team.