Recruiting

Making Referral Programs Pay–Tips and Sample Policy


Yesterday’s Advisor covered VistaPrint’s very successful employee referral program. Today we’ll look at program tips from The HR Red Book® and a sample policy.


In planning your referral program, says The HR Red Book® (formally known as What to Do About Personnel Problems in [Your State]), keep these tips in mind:



  • Incentives can include gift certificates, company merchandise, or cash rewards.
  • Regular communication about the program with employees is key to keeping it going.
  • It is essential to treat referral candidates well. If word gets out that you didn’t, bye-bye referral program.
  • Explain your nepotism policy clearly so there are no misunderstandings. 



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Sample Policy: Employee Referral Program (from HR.BLRcom):


As part of a comprehensive recruitment strategy, it is the policy of the company to encourage its own employees to assist with the recruitment of new employees for hard-to-fill jobs with special skills requirements. All applicants shall receive equal consideration without regard to race, religion, sex, marital status or disability. To reward employees for referring qualified candidates who subsequently are hired, the company pays the referring employee a cash bonus from $500 to $1,500 net for each successful referral made in accordance with the following provisions:



  • Positions eligible for an employee referral bonus payment will be so identified on the “Notice of Vacancy” announcement. The amount of the bonus payment will vary, depending on the difficulty in filling the position.
  • For each qualified candidate referred, the referring employee must complete an Employee Referral Form.
  • Employees making a referral are responsible for informing the candidate of the vacancy, obtaining the individual’s consent and, where possible, having the individual submit an up-to-date résumé and completed application form.
  • All candidates must meet the stated qualifications and will receive equal consideration and be processed in the same way as other applicants.

OK, that helps with referral programs. Now, how about EEO-1 reports, terminations, benefits, intermittent leave, and accommodations? Let’s face it, in HR, if it’s not one thing it’s another. You need resources, and our editors recommend the “everything HR in one website,” HR.BLR.com.


As an example of what you will find there, here are some tips on hiring, taken from a supervisor handout on the website:



  • Evaluate applications and résumés against a written job description that outlines essential job functions and defines the skills, knowledge, aptitudes, and abilities required to perform the job effectively.
  • Check references and compare the information you obtain with applications and résumés. Surveys report that 30 percent to 50 percent of job applicants either lie or exaggerate on applications and résumés.
  • Don’t let personal prejudices interfere with the screening process. Evaluate each candidate based on objective job qualifications.
  • Know—and follow strictly—requirements of company hiring policies and the fair employment laws.

We should point out that this is just one of hundreds of such handouts and other supervisor training aids on the site.




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