Why does your organization need a referral system? A strong and efficient referral system can be your biggest competitive differentiator. How? First of all, when you receive prospective referrals from people you know and trust, you get to meet people who want to meet you. Now that you’ve established a relationship with your prospects, they will share information with you that your competitors will never hear. You will get insights that will help you track expected timelines, budget, and key decision makers. But it doesn’t stop here. Not only does research prove that employee referrals are a cheaper, faster, and more efficient way to hire, they generally reduce turnover rates. Here’s why your organization really needs a referral system:

It’s Faster

Employees know exactly what the company is looking for; so referred candidates are already pre-screened. Employees wouldn’t want to risk their position at your organization by recommending a candidate who is unfit for the office, so they think thoroughly before referring a specific candidate. Employees are also aware of all the qualities that would make their referral the perfect fit for the position. Cavall’s referral system allows users to refer qualified candidates to any open vacancy in a structured way, while being able to accurately track and reward your best channels. Rather than receiving and screening through multiple CVs, employee referrals cut your time short, and also reduce labor costs.

It Increases Employee Morale

With this feature, you have the option of sending a direct referral link where the candidate enters his/her information to an ”apply now” page. This way, Cavall will remember this user for the vacancy; they will also receive an email once the link is generated. Candidates who are referred usually have to learn about the company, the policies and the culture. These candidates will feel a sense of loyalty to the team and office, which boosts their morale and assurance especially since they might know at least one other person at the office. A referred hire who feels good about their smooth hiring process usually stays longer at the job in comparison to a traditional hire. Usually an employee referral prevents having “mismatched expectations” which ensures that those who are hired through this method will succeed at their job.

It’s Cheaper

With Cavall’s referral system you can allow employees, alumni, customers, vendors or even partners to refer a candidate via their social media or email connections. It allows you to share a link, send it to your network, or even create your own referral link for a certain vacancy. When you save time, you save money. It’s usually cheaper to hire a referred candidate, since other recruiting costs such as job advertisements are cut short. Screening and selecting candidates can be quite costly; sometimes they’re even outsourced to other third party organizations. When you market via word of mouth, it barely costs you anything, so employee referrals are predominantly a cheap way to find real talent.