business communication, employee performance evaluation, employee training, hr best practices, Human Resources Training

Making employee referral programs successful

Employee referral programs are a fine means to ensuring that the organization gets a trustworthy hand. It is a great way to save lots of money and effort on ads. In fact, more than that, its effectiveness is best felt when one considers that you are going straightaway to the exact candidate you are looking for: The one with the best skills and experience. It is like a customer testimonial…you wouldn’t think twice about buying a product that someone who has already used it recommends.

How does an employee referral program work best?

Now that we know that there are enormous benefits involved in employee referral programs, let us examine a few thumb rules on how to make it work:

Be honest with your rewards

One common mistake most employers make is to fix a pittance as employee referral incentive. Who would want to go out of the way to refer his employer to a friend, ex-colleague or classmate for a paltry sum? Agreed, employees who give their references to HR shouldn’t be looking at these programs as a source of additional regular income; yet, some meaningful reward has to set if they have to be motivated into scouring their contacts to give references.

Be quick to reward

More importantly, HR should not postpone making the payment. Why should anyone have to wait for their reference to complete three or six months in order to get their reward? Retaining the referred employee is the management’s job, and has nothing to do with the referrer. A quick reward system will make it work the way it is meant to: saving the employer loads of trouble and money, while also goading employees into participating and feeling good about it.


Contact Details

Fax: 302-288-6884
43337 Livermore Common | Fremont| CA | USA | 94539



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