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How should we reward employees who recommend new hires?

by on
in The HR Specialist Forum

"Even as the local economy has tightened up, we're still hiring. But there's good news and bad news: because unemployment is high, we're getting lots of applications from unqualified people. I'd like to start an employee referral program to encourage our workers to recommend candidates. I hope that will give us a better quality applicant pool. How should I go about setting up such a program?"—Pete, Ala.


See comments below

{ 10 comments… read them below or add one }

Tammy, CA March 9, 2010 at 4:53 pm

We provide a $250 referral bonus once new hire successfully completes 90-day orientation period. However, managers are not eligible given that they may be in a position of persuasion.

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Melissa March 17, 2009 at 3:56 pm

We offer a 1500.00 referral bonus for employees who refer a staff member and 5000.00 for the referral of an attorney, as long as the new person is with us 90 days later. We don’t give these bonuses for interns or temps we hire, but only for full time professionals.

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Chris November 14, 2008 at 9:08 am

When you consider the total costs in recruiting talent, referral bonuses are a no brainer. We give $1,000 after the referral has been here for 30 days and another $1,000 when the referral has been employed for a year.

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Cindy November 12, 2008 at 12:30 pm

Wow! This is a nice idea. I have never thought of it. Not only do the employees get a nice bonus, but extending the payment out even longer than the 90 days helps keep that original employee interested in the new employee doing well. Helps in training.

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Tara November 11, 2008 at 3:41 pm

We give a $250 bonus to the person referring the employee once the new employee has passed their 90-day mark. It’s such a nice treat!

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Patty November 5, 2008 at 9:24 am

We offer $125 at the 90 days, another $125 at 6 months & $250 at 1 year, that’s a $500 bonus total.

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Julie November 4, 2008 at 5:59 pm

Forgot to post the amount…We offer $350 – the approximate amount we save by not having posting the job online.

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Julie November 4, 2008 at 5:58 pm

We offer a check in form of a referral bonus for employees who refer someone we hire, as long as the new person is with us 90 days later. We don’t give these bonuses for interns or temps we hire, but only for full time professionals. They love it!

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S in CA November 4, 2008 at 4:13 pm

We offer a $1000 reward for full-time referrals and $500 for part-time referrals after the new hire passes the 90 day probationary period.

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A J November 4, 2008 at 3:39 pm

We offer a $50 bonus to the person recruiting the new hire @ the 6 mo anniversary

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