5 Reasons to NOT use an Employee Referral Software

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Using an employee referral software is extremely beneficial unless:

  • You love spreadsheets and consider yourself an excel guru.
  • You love to spend your time filtering through job boards.
  • You aren’t interested in filling positions faster with quality hires.
  • You aren’t a fan of the convenience of mobility.
  • You aren’t interested in maximizing your ROI.


Think of it this way, if things are currently going “okay” there is no reason to do things differently. Why would you possibly want to grow or improve your business when you are fine as is?  The employees at your company aren’t even that good, why have more people that aren’t that good? Besides, the job boards are giving you an endless amount of great candidates already – right? And if you nuked the employee referral spreadsheet, you wouldn’t get much out of that expensive Microsoft Excel license. Spending countless hours every week tracking referrals on a spreadsheet maximizes the ROI on your Excel spend! 


Don’t get me started on the convenience of mobility. The thought of being able to make a referral from anywhere at any time is too simple. Don’t you want to wait until you are back in the office days later and have to try and remember the exact person that you thought would be a great fit? And who needs the ability to empower employees to share jobs on social media. There is no need to expand your recruitment reach! Just stick with job boards and hiring events. I’m sure those will be around forever unlike technology. Have you ever considered throwing some of your jobs into a newspaper? Those aren’t outdated by any means. Remember mobility is out and job boards/newspapers are in!


Still, wanting to invest in an employee referral software even after reading these really great reasons not to? Take a look at the statistics of Employee Referrals. Referrals are 5x more likely to be hired. That means that a great candidate is just waiting in your recruitment pipeline. Why would I waste my chances when there is a mediocre candidate that I haven’t even found yet? 82% of employers rated employee referrals above all other sources for generating the best ROI. Obviously, 18% of employers are doing it right. Return on investment doesn’t even matter, don’t let them fool you. ROI? Thank you, next! I hope that after seeing the facts you stay wary of using an employee referral software. The benefits just don’t compare to doing everything manually.


Key things to remember: 

  • Keeping your recruitment pipeline empty means less work for you
  • You have plenty of time on your hands to do things yourself.
  • Your company is fine at the moment, so there is no need to improve.
  • Mobility just means more options, staying limited doesn’t give you unreasonable hope. 
  • Return on Investment isn’t a real thing.