Employee referral programs are a powerful way to save your company significant costs—up to $3,000 per hire. However, if you’re relying on outdated manual processes, you may not fully realize these savings.

To get your CFO on board with automating your referral program, focus on what matters most to them: cutting costs, reducing risks, and improving efficiency.

Here’s how to build a compelling case that shows automation is a smart financial move.

1. Start With the Pain Points

CFOs are always looking for inefficiencies that impact the bottom line. Manual referral processes often carry hidden costs that aren’t immediately visible but can quickly add up. Highlighting these pain points will help your CFO see where automation can deliver real value.

Here’s what to focus on:

Wasted Administrative Hours

Manually tracking referrals and processing payouts ties up HR and finance resources. For instance, handling each referral manually requires hours of coordination, follow-ups, and data entry, consuming time that could be better spent on talent acquisition and other initiatives. These inefficiencies compound over time, escalating costs and reducing overall productivity.

Human Errors

Manual systems are prone to errors such as overpayments, missed payments, or delayed referral bonuses, damaging employee trust and participation. These errors not only impact the program's financial side but also reduce employee engagement's effectiveness.

Lost Opportunities

Slow referral processes discourage employee participation. Delayed rewards are a major reason employees disengage from referral programs, which can lead to missed opportunities for valuable hires.

“Finance teams can be hesitant about referral programs when manual processes are involved, notes  Dakota Younger, CEO of Boon.” This often arises from the inefficiencies and administrative burdens that manual systems create, leading to frustration and reducing overall support for the program.

Automation eliminates these pain points by streamlining the referral process.

2. Highlight Compliance and Risk Reduction

Compliance is a critical focus for CFOs, and manual referral programs often introduce avoidable risks that could impact your bottom line. Here's how automation helps reduce these risks:

Tax Compliance

The IRS requires 1099 forms for rewards exceeding $600. Manual systems often miss payments, leading to compliance issues that could expose your company to audits and penalties.

Automation ensures precise tracking and reporting, mitigating these risks and keeping your referral program compliant.

Audit Preparedness

Audit trails are scattered across spreadsheets and emails without automation, which can lead to lengthy, disorganized audits. Automated platforms centralize all referral data, creating a streamlined system that makes audits faster and more efficient while reducing potential errors.

Data Security

Manual systems are more vulnerable to data breaches, especially when sensitive employee and candidate information is manually tracked. Automated platforms prioritize secure data storage, safeguarding your company’s information, and building trust with employees and candidates.

3. Focus on the Financial Impact

CFOs want to see measurable ROI. When selling automation, clearly show, using data and performance KPIs, how optimizing the referral process impacts the company’s bottom line.

Cost-Per-Hire

Manual systems can drive up your cost-per-hire, sometimes reaching $4,000 per hire. Automating your referral process saves money on every new hire. CFOs appreciate numbers that show how those savings add up. You can use a referral hiring ROI calculator to measure the return on investment.

Referral Engagement Rates and Employee Retention

Automation lowers costs and drives better outcomes. You’ll see higher participation rates and deeper employee engagement by streamlining and promoting your referral program. Employees are more likely to refer quality candidates when the process is simple and rewarding. Furthermore, referred hires tend to stay longer, contributing to a lower turnover rate and improving overall retention—a long-term financial benefit.

Time-to-Hire

Manual referral processes contribute to extended hiring times, resulting in lost productivity.

Automation can reduce time-to-hire by up to 50%, filling positions faster and allowing teams to focus on high-value tasks rather than chasing down referrals. Faster hires also lead to quicker integration and higher productivity from new employees.

Enhanced Employer Branding

Automation strengthens your employer brand. A well-run, automated referral program promotes a positive experience for employees, encouraging higher engagement. The resulting increase in participation can help attract top talent, contributing to long-term growth and business success.

4. Appeal to Scalability and Future-proofing

CFOs are focused on long-term sustainability. As your organization grows, your recruitment strategy must scale to manage increased volumes without sacrificing efficiency. Unlike manual systems, automation ensures scalability and adaptability:

Handles High Volumes

Automated platforms can process significantly more referrals without adding to administrative burdens or overwhelming the team. This allows your recruitment efforts to scale as your company grows, ensuring smooth operations even during high-demand periods.

Seamless Integration

Automation systems, like Boon, integrate easily with your existing HR tech stack, allowing your organization to build on its current infrastructure rather than overhauling it. This ensures that your recruiting process remains adaptable and efficient as your technology evolves.

Data-Driven Decisions

Automation provides actionable data and insights that empower CFOs and HR leaders to make informed decisions. Beyond traditional metrics like cost-per-hire, it helps track referral engagement rates, employee retention, and turnover reduction much more easily, giving a comprehensive view of your program's success. These insights ensure that your hiring process remains efficient and impactful as your company expands.

5. Address Potential Objections

Anticipate and prepare for common CFO concerns:

Upfront Costs

CFOs are naturally concerned about the initial investment. However, the key is showing how automation delivers clear, measurable savings. By cutting administrative hours, reducing errors, and speeding up the hiring process, automation delivers ROI that far outweighs the upfront costs. Make the case that the long-term savings and efficiencies gained will quickly pay for the investment.

Implementation Time

CFOs often worry about the time required for a new system to be integrated. Automated platforms like Boon are designed for fast, seamless integration with existing HR tech systems. This minimizes any disruption to ongoing recruitment processes, ensuring a smooth and swift transition to automation without unnecessary delays or downtime.

Aligning Your Referral Program with CFO Priorities

Selling your referral program to your CFO is about aligning automation with their financial priorities. Focus on how getting on board can deliver measurable cost savings, reduce compliance risks, and scale with your company’s growth.

Calculate your reward management costs and show your CFO how automation can streamline your referral program, reduce hiring expenses, and support sustainable growth.

That way, you can demonstrate the financial impact and efficiency gains of automating your referral program.

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