A lot of businesses are relying on Employee Referral incentive program to draw in eligible applicants and cut down on the expense and duration of the hiring process because many organization may find it difficult to find outstanding talent, and using conventional recruitment techniques can be expensive and time-consuming.
An effective technique to get your present employees to recommend their friends, family, and acquaintances to your business is through an employee
By rewarding your employees for making successful recommendations, you not only draw in top applicants but also raise engagement and satisfaction levels within your current workforce. In this article, we will look at an employee referral incentive program Policy Template.
Employee Referral Incentive Program Policy
XYZ Company HR is committed to attracting and retaining the best-qualified staff to support the Vision and Mission of our organization. As an extension of the internal Human Resources Department’s recruitment responsibilities, XYZ Company HR will reward regular (full- and part-time) employees with a financial incentive for their efforts in referring qualified, knowledgeable and professional persons for employment consideration. Incentive rewards will be paid for referring individuals for a regular position with XYZ Company HR.
Eligibility and Program Guidelines
1. It is a fundamental responsibility of all XYZ Company HR Senior Leaders to continually network and seek out opportunities to attract other human resource professionals who would enhance or complement the XYZ Company HR human resource knowledge base. In keeping with the spirit of their obligations, all XYZ Company HR Senior Leaders are ineligible to participate in the referral incentive program.
2. Employees assigned to the Human Resources Business Unit are ineligible to participate in the Referral Program.
3. Managers and Supervisors may participate in the program only if the referral will not be a direct report.
4. Employees eligible to participate in the program may refer an unlimited number of persons to be considered for employment with XYZ Company HR. There are no limitations on the number of financial incentive rewards that can be received by an employee.
5. If an “Employee Referral” form is submitted by more than one employee for the same referral, the date of receipt by the Human Resources Department will determine the employee eligible for the incentive reward.
6. Former XYZ Company HR employees do not qualify to be a new referral under the program. A referral also excludes persons who are currently working for XYZ Company HR in any one of the following employment categories: intermittent, temp to hire, contractor, or subcontractor.
7. All individuals referred will be required to submit an official XYZ Company HR on-line application during the recruitment / outreach process.
Referral Procedures
1. Regular employees must complete and submit to the Human Resources Department the “Employee Referral Program policy” form, which includes the position for which the referral is to be considered OR the special skill sets the referral possesses to assist in considering the referral for multiple positions within the organization.
2. The form shall also include the prospective employee’s name and contact information (email and telephone numbers). A resume and/or business card of the referral may also be attached to the form.
3. Staff in the Human Resources Department shall date stamp the form for receipt tracking purposes.
4. Staff in the Human Resources Department will conduct outreach efforts with the referral candidate.
5. All referral candidates will be considered and processed by the Human Resources Department using the same qualification methodologies and
standards as would apply for any other applicant being considered for employment with XYZ Company HR.
6. Human Resources Department staff will not identify to the hiring manager / supervisor the name of the person who referred the candidate. The referred candidate shall be considered by the hiring unit amongst all other certified candidates eligible for hire.
7. If the referral is hired as a regular employee by XYZ Company HR Consulting, staff in the Human Resources Department will notify and thank the employee who made the referral, and process the incentive award.
Incentive Reward
1. An employee will receive $500 for each new referral who was hired as a new regular XYZ Company HR employee.
2. The employee will receive his/her incentive in two payments: a) $250 will be paid the pay period immediately following the new employee’s start date; and b) $250 will be paid the pay period immediately following the new employee’s successful completion of six months of employment.
3. All incentive rewards are reported as income and are subject to all applicable federal, state, and local taxes, and California law.
4. Employees making referrals which result in new hires will be recognized at XYZ Company HR All Staff meetings.
In conclusion, an Employee Referral Incentive Program can be a highly effective and cost-efficient way for companies to recruit top talent. With careful planning and execution, an Employee Referral Incentive Program can become a valuable tool in a company’s recruitment strategy.
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