5 reasons why an ATS isn’t enough for employee referrals

December 23, 2015 Stephen Brown
5 reasons why an ATS isn’t enough for employee referrals

Many organizations have realized the benefits of implementing an application tracking system (ATS). These benefits include the ability to automate recruitment processes and analyzing many different aspects of recruitment affairs.

However, it is often argued that a well managed ATS negates the need for a dedicated employee referral program. Employee referrals are a great source of candidates, providing highly skilled prospective employees at lower costs and with higher retention rates, amongst many other benefits. Many ATSs are now implementing rudimentary referral functionality into their platforms, however there are several restrictions to these developments:

  1. ATSs don’t have dedicated referral activities that simplify the discovery of relevant contacts for open positions. This can result in lengthy searches for your employees as they look for someone who is the best fit

  2. ATS providers can’t advise on how to launch an employee referral program and which incentives to put in place. This is because they are not experts in this field and lack the specialist knowledge required to create a great referral program

  3. ATSs rarely provide incentives for people outside of the company to make referrals

  4. ATSs only encourage broadcasting jobs, not 1:1 private messages. Private messages represent the best way for reaching high value passive candidates and getting them hooked on an opportunity

  5. ATSs rarely have the functionality for employees to track who they’ve referred and which stage they’re at in the process

Whilst ATSs can play an important role in the recruitment process, they are at their most effective when they are supplemented with a dedicated employee referral program. The specialist knowledge of what motivates employees to get involved in referrals and how best to target passive candidates makes specialist employee referral program providers the ideal method through which to attract top talent and boost your retention rates.

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