The success of a company depends on the hiring process. That’s why the top priorities for job recruiters are finding and hiring top talent fast while having confidence they will remain long term. Companies utilizing talent software like applicant tracking systems have an advantage because the recruitment process is automated and jobs are posted to career sites instantly. But does the ATS go a step further by providing employees a referral portal so they can recommend professional colleagues and friends who would be perfect fit for an open position? If your recruitment software lacks the ability to manage employee referrals, you are missing out on what 88% of employers say are the number one source for above-average applicants.
Here’s are 5 key data points
- Employee referrals make up a minority of incoming candidates: According to a survey conducted by Jobvite, referrals make up only 6.9% of job applications versus 42% that were sourced via job boards. Yet still…
- Employee referrals are more likely to be hired: Although the amount of employee referral applications were slim, about 40% of those candidates were hired. Another source cites that the applicant-to-hire ratio for employee referrals is 1 to 3 compared to 1:10 for non-referrals.
- Employee referrals are more likely to stay long term: HR professionals reported an annual average retention rate of 46% compared to 33% via career sites and 22% from third party job boards.
- Referrals can save the company money: The average cost for standard recruitment efforts range between $4,000 – $18,000 dollars. Employee referrals can reduce those numbers massively to $1,000 or less.
5. Despite the myth…Referrals do not have a negative impact on a diverse work culture. According to this survey, 55% of respondents said employee referrals were “somewhat” to “very productive” sources for diverse hires.
With all of this promising data, you can’t waste another minute or dollar on an applicant tracking system that lacks the ability to manage and track employee referrals and incentives. For 30 days absolutely free, you can test drive our best-in-class ATS that includes a fully loaded Employee Referral Portal.