Considering an Employee Referral Program?

Finding great employees to work for a company can be very hard. Why not use your current employees to help you find your next ones?   Building a top notch team is a never-ending process and sometimes relying on your current team is the best way to find top talent. Here are 3 easy steps to get you started:

  1. Money Matters- Offer the employees a meaningful sum of money (could be a month’s wage) for someone they refer. Sounds like a lot, but believe me, it isn’t when they recruit a star. However, it would have earn-out. Meaning, they get a third of it after the first 30 days on-board, a third after 60 days, and again after 90 days (or whatever time-frame you deem appropriate). This way you ensure the new hire is a quality team member.
  2. Quality over Quantity- It can be helpful to have a large pool of potential long-term talent to sift through, but you may have much greater success if you gave them specific requirements. Rather than encourage team members to refer as many people as possible, reward employees who dig deeper, even if it results in fewer referrals over time. Often, these more selective picks will last longer.
  3. Remember Taxes- many employers use the bonus money to make an employee referral program attractive. One way to enhance that is to make the bonus after tax. If you don’t do that, the person bringing you the new hire might have somewhat of a bad taste in their mouth if the program says you get $500, but turns out to be about $400 after taxes.

Leave a Reply

Your email address will not be published. Required fields are marked *