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Top 7 Benefits of Employee Referral Software

Companies can scout new talent through various methods, such as career fairs and job boards, but employee referrals are perhaps the best option for hiring quality candidates. That said, handling several referrals can get quite challenging, which is why many organizations are now investing in employee referral software. These tools save a lot of effort, streamline the process, speed up hiring, reduce the risk of errors, and provide several other benefits.

Top 7 Benefits of Employee Referral Software

1. Makes submitting referrals easier
The whole point of an employee referral scheme is to allow employees to refer candidates for a new job opening. While many are happy to do so, the process is sometimes so complex that they get discouraged from taking up the task. This is where employee referral program software comes in to make submitting referrals easier and more efficient. The tool provides an online interface, which individuals can access easily from their computer and submit a referral in just a few simple steps. Some can even be used via a mobile app, which makes the process even simpler, letting one refer candidates at any time, even while on the go.

2. Helps track referrals
Employee referral software solutions have several features that help streamline the referral process, one of the most useful being the referral tracking system. As the name suggests, this feature lets hiring managers and recruiters track all the referred candidates, making their jobs more efficient. It also allows employees to track how far their referred candidate has reached in the hiring process and record their past referrals.

3. Easy reward management
One of the most common reasons employees refer candidates for an open position is the rewards and incentives they receive, especially if their referred candidate gets hired. But that also means organizations must let everyone know what the rewards are and if they differ based on the positions being filled. Employee referral software systems can make things easier by mentioning these rewards and incentives on their portal and updating them occasionally. The software can also allow employees to track the rewards they have already earned by referring candidates in the past.

4. Improves employee engagement
Companies host several activities and roll out different schemes to keep employees engaged, employee referral being one of them. When an employee recommends a candidate and the organization accepts their request, the individual feels more valued. It also allows them to help their friends and connections looking for a new job. This engagement can be enhanced with an employee referral software system that makes submitting referrals and claiming incentives easier.

5. Helps find more suitable candidates
Companies often struggle to find the perfect candidate for a job opening, especially when hundreds of people apply. In such a situation, the hiring team must spend more time screening the applications and deciding whom to hire. Even if they find someone with good knowledge and experience, the new candidate might not fit the company’s work culture and values. That’s why it is better to shortlist candidates referred by current employees through the referral software. The company’s employees already understand the work culture well and will likely recommend someone who will fit in easily. They will also refer candidates with the highest chances of being hired, as it increases the likelihood of them getting incentives. This ultimately makes the hiring process easier for organizations.

6. Saves costs
Many organizations rely on external agencies to hire new talent, which often charge a high commission for their services. To reduce these costs, organizations can implement employee referral program software. The referral bonuses or incentives organizations give employees would be much less than the commission charged by external agencies.

7. Easy integration with existing systems
Many organizations worry about whether new software will integrate with existing tools. A major benefit of employee referral software is that it works with existing systems, such as HR management platforms, payroll systems, and applicant tracking systems. This streamlines the overall workflow considerably and increases efficiency in the long run.

Top employee referral software
While several options are available in the market, companies should assess their requirements and select the one with the strongest reputation.

1. Boon
With a user-friendly and intuitive interface, Boon is one of the best employee referral software tools out there. It has a special feature that automatically suggests employees which candidates to refer for a job opening from their connections, increasing their chances of winning rewards and incentives.

2. Jobvite
Another software that is highly admired for its user-friendly interface is Jobvite. Some key features that make it worth considering for many companies are real-time referral tracking and easy incentive management.

3. ERIN
Companies prefer this employee referral software tool for its easy integration with their current systems, including HRIS and payroll portal. ERIN uses AI-based technology that makes the referral and hiring process highly seamless for companies, saving time and effort.

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