Employee Referral Program

Magestry

Does anyone out there have an employee referral bonus program. I would love to hear some ideas. Currently we have one where we pay the employee $25 at the time a new hire starts and $75 after 90 days. We have been getting more every year than others. We try to communicate it best we can, but are there any other ideas that are working better?

ritaanz

Our employee referral policy reads: The Company will compensate an employee who refers a new and qualified individual for employment. A qualified individual is a candidate that is new to the Company, is hired, successfully completes the probationary period and becomes a "regular" employee. The referring employee will then receive a referral award of $250.00.

Magestry

Thanks.
I appreciate your quick response. I wasn't sure how much the market was offering for referrals What State are you in? How has this worked for you in getting people in and in retention? Has your company looked into changing the $ amounts at all, and if so up or down?

Suggestion, If you are in an employment-at-will state, I would check on the use of wording of "Probationary Period".

ritaanz

I'm in Arizona. The program brought in a number of qualified applicants. We have used the $250 number for several years now. The downside I experienced was when one employee's referral was hired over another employee's.

System

In Tennessee, we pay $100. When we had a big need in one department, we raised it a lot (I think $200 or $300) if the new hire was in that department.

James Sokolowski
Senior Editor
M. Lee Smith Publishers