How to Create an Employee Referral Program


Employee referral programs are quickly becoming a corporate staple. After all, corporations with employee referral programs have an average retention rate of 46% compared to 33% in organizations that do not have a program.

The key to referral programs’ success in attracting top candidates in your initial investment – if you take the time to find and hire a competent employee, chances are their peers would also be a stellar match. And who doesn’t love working with friends?

As you track the metrics and success of your referral programs you’ll notice that those with better employee rewards will naturally have more engagement. Creating an employee referral program is fairly straightforward: determine the hiring and referral procedure, promote the program within your corporation so employees are aware of the program and determine the benefits or rewards for employees who successfully refer candidates. So what should you do to create a successful referral program?

Create Clear Parameters

Simply asking employees to refer their friends may lead to interviews with qualified candidates, but it can also lead to plenty of wasted time. When you email employees or create a flyer for your referral program be clear about what skills and experience a candidate should have to deter random roommates and spouses from applying.

For example, include information such as how many years they should have worked in the industry, what type and level of degree they should hold, and the requirements of the job when you inform your employees about the program.

Implement Tiered Rewards


Employees will actively seek to refer their friends and business contacts if they are compensated well for their efforts. Many companies simply give a lump financial sum after the referred employee has worked for 3 months.

However, you can reward employees through every step of the hiring process to increase the amount of referrals you receive. For example, you can gift a thoughtful (and scrumptious) chocolate gift box for each individual an employee refers.

Additionally, if the referral comes in for an interview you can give something truly useful like an executive messenger bag or a backpack cooler and chair combo. Get creative! According to Undercover Recruiter over 80% of companies use non-cash rewards in their employee referral program.

Make It a Competition


Beyond cash and promotional product rewards you can award the employee who referred the most hires at the end of the year. This will keep engagement high throughout the year and is particularly effective in larger organizations that need plenty of new employees each year.

Consider recognizing excellence in referrals with a specific award. Giving out an eye-catching award every year will create a record that employees will always remember and a way to motivate those who didn’t win.

Promotional products are terrific rewards for employees who refer great candidates through your employee referral program. Talk to your HALO Account Executive to brainstorm which products will make your employees feel appreciated.

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