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Advantages of Employee Referral Software

'Like Minds Think Alike.' It is one of the most effective sayings when it comes to employee referral hiring. Currently, there are multiple employee referral software out there.
Here in this thread, we have curated a list of advantages of the employee referral software in the long run for the company:

High ROI

This is a fact that one of the essential expenses of a company is 'Recruitment.' The human resource in the company is considered very important as this is one resource that can break or make the company. Companies end up spending a considerable amount of time and cost in the process of recruitment. This cost could be either directly related or indirectly, depends on the need.

The direct cost is involved when the companies end up paying a huge commission to all the recruitment agencies out there. On average, the company ends up paying, 15-2- percent of the annual pay of the employee directly to these agencies. On the other hand, direct cost also involves employee referral bonus amounts, which is about 5% of the salary. The fees paid to the various career and job portals or any advertisement or marketing which generally is done for recruitment are all counted under direct payments. On the other hand, indirect cost includes the money spent on various resources such as logistics, time, etc. 

Importance of the Referral Hires

One of the essential benefits of the employee referral platform is the retention of the referred employees. The research is done on the attrition and retention rates of the employees. It observed that involved employees end up staying for a longer duration in the firm than the regularly hired employees. It signifies a far better retention rate, which is beneficial for the company in the long run. 
The study also stated that a referred employee stays in the company for at least a year. On the other hand, the candidates hired through various other sources such as recruitment agencies, websites, and job portals do not stay for that long in the organization.

Easy to Find Candidates for Hard Roles

To fill in the vacancies for hard to find roles has been the biggest challenge for the companies out there. However, with the help of the employee referral platform, this is also taken care of. Finding such people is hard to find on any of the job portals or websites. One of the most powerful means to get hands-on is through the network of your existing professionals.

It becomes all the easier to find people who have similar skill sets through the professional employees' existing network. For example, your company might be looking for someone in a high position to fill in the marketing role department. The existing employees will surely have a vast network of people who are into similar roles and can be a suitable fit to fill up the vacancy. Employees, by doing so, also add up to the employee referral bonus amounts. It is because they end up helping the company in times of need.

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