Employee referrals: definition and functioning
Resume parsing | ATS
Index of contents
1. What is a Referral System for employees?
2. Why employee referrals are important for companies?
3. What are the benefits of employee referrals programmes?
4. Employee Referrals Tracking System at Arca24
5. How does the Referral Tracking System work in Arca24?
6. Why it is important to keep the Referral Tracking System updated?
1. What is a Referral System for employees?
A Referral System is a recruiting strategy employers use to encourage existing employees to recommend qualified candidates for open positions in their companies. In most cases, but not always, the employee who recommends the right candidate receives an economic bonus or other kinds of incentives.
Let’s say, for example, you know an employee at Arca24 and we have an open position, that employee can be your referral. This means that he/she can give you a valid reference for that job vacancy.
2. Why employee referrals are important for companies?
Employee referrals have a positive impact on companies:
Candidates join the company faster
Recruitment costs are lower
Turnover taxes are reduced, leading to a reduction of replacement costs as well.
According to the Work Institute, each voluntary resignation costs about one-third of that worker’s annual earnings. This figure includes recruiter fees, temporary replacement workers and lost productivity.
3. What are the benefits of employee referrals programmes?
When recommending successful candidates for a job vacancy, employees can experience genuine fulfillment, as they feel they have done something useful for the company.
Moreover, workers who get hired thanks to employee referrals programmes are easier to onboard into the company culture, as they already got to know your company through your employee’s eyes.
4. Employee Referrals Tracking System at Arca24
Usually, employee referrals programmes are managed by HR departments with the help of team managers, and sometimes marketing department and executives.
In our ATS (Applicant Tracking System) we offer you the possibility to install an additional functionality, which allows you to track the origin of an application submitted using the employee referrals programme.
A specific report will show your recruiters the origin of all applications in order to correctly identify the employee who recommended the candidate.
This functionality is available for both Ngage – our Staffing Agency Software, which allows you to manage recruiting, job orders and invoicing, and Talentum – our Talent Management Software, which allows you to manage recruiting, onboarding and employee performance.
5. How does the Referral Tracking System work in Arca24?
When a recruiter posts a job offer in our ATS, he/she can easily and instantly modify the url of a job offer by inserting a unique reference in the url (for example, the name of the referral, a specific keyword) to create a custom url and track the application source.
Ask for a free demo to see how Arca24 Applicant Tracking System can track your employee referrals
6. Why it is important to keep the Referral Tracking System updated?
Employees who have recommended a candidate for a job vacancy usually want to be updated about the recommendation they have done and the bonus they expect to receive. They can feel frustrated if HR departments can’t provide them with this information nor keep them posted.
The change of the URL can be done either by the recruiter or by the employee, who wants to send the job advert to an acquaintance.
- Open the job advert and select the link on the page
- Edit the URL, deleting all the text after the job id (id=2304):
- Add &source= and either a person’s name or a reference keyword, e.g.:
- Send the link to the desired person who, by filling in the registration form, will keep the personalized provenance in the link.
- The provenance data is available in the dashboard of the candidate, who has registered through that link, and in the reports.
Company
Arca24 is an HR Tech Factory specialised in the development of cloud software for the human resources sector.
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Reference products
Ngage – Staffing Agency Software
Ngage (ATS+CRM) is a solution developed to support staffing and employment agencies throughout the entire production cycle. It optimizes and digitalize the processes of talent acquisition, customer relationship and administrative management.
Talentum – Talent Management Software
Talentum is a complete and intuitive end-to-end solution that allows the HR department to acquire, manage and optimise the workforce throughout the employee’s life cycle (from search and selection activities to the onboarding of selected candidates).