Good People Know Good People – Employee Referral Programs

While the job market has seen a shift in recent months, employers are still feeling the effects from the “war for talent.” Implementing an employee referral program is a positive way to financially incentivize employees to spread the word about open positions.

Clear guidelines and expectations are important aspects of a successful referral program. Employees should know who is eligible to participate and what they can expect if they successfully refer someone. According to a survey completed at Human Capital Institute (HCI), 78% of companies provide the same financial reward for all positions. This can reduce the risk of one job seeming more important than another.

Arm your employees with key information about the position that they can then share with their potential referral. This may include salary range, desired traits, specific certifications or education, as well as previous work experience. Another way to incentivize your employees is to provide “instant gratification.” Instead of dispersing the full reward after a designated amount of time after hire, employers may want to consider providing half of the reward upon hire and the remaining balance upon completion of an introductory period.

Implementing a structured referral program can turn your employees into recruiting machines! A consultant is available to assist you with creating and implementing an employee referral program for your company.