Advice is greatly appreciated!

Do you have an Employee Referral Program and if so, how much $ do you provide to the ee for recommending/referring the applicant?

Currently, our program provides our ee's with $100 after their referral works for us for 90 days. This program & the dollars involved apply uniformly for any position we have in the company and I would like to modify this policy to include hard to hire positions with more money offered to the ee for the referral. Off the top of my head, I would break the Referral Bonus Program into 3 categories (not necessarily advertised this way):

Cat#1 (Hard to Hire) = $1000
Cat#2 (Specialized Skill) = $500
Cat#3 (Easy to hire) = $100

Specific skill/experience/education requirements will be listed in each category & I'm thinking of changing the 90-day requirement to 180 days for Cat#1.

Bad practice? Any pitfalls I should be aware of? Thanks in advance for your help and insight.

Comments

  • 14 Comments sorted by Votes Date Added
  • We use a system similar to the one you've proposed. One difference - we pay out half of the referral after 30 days, the second half after one year. The referring employee must be currently employed by us in order to receive the referral bonus.
  • We provide $100.00 to the ee, who refers and assist us in landing a quality person who stays for 60 days, followed by another $100.00 after the ee has been with us for 6 months. There is no limit to the number and we do hire relatives and friends. $200.00 ain't bad change for finding a good quality person with the right attitude and willing to do real physical hard work. We don't make "atom bombs" just great PORK, just so you can bring the bacon home for breadkfast or ribs for lunch or dinner. Hey, I got to go the "RIBS" are waiting for my eating.

    By the way I would raise the recruiting bonus program if my needs were hard to fill!

    PORK

  • >
    Hey, I got to go the "RIBS" are waiting for my eating.
    >PORK


    Pork,
    Does it ever bother you to think that maybe one of those poor porkers that gave their life so you could have ribs, is the same little piglet for whom you delivered the "Golden Juices"?
  • We do $500.00, $100 at hire $400 after 90 days.

    My $0.02 worth!
    DJ The Balloonman
  • NO, I think about as I'm delivering, or pulling pigs, or herding them out the back door to the waiting trailer that transports them to the grower, who feeds them and nurses them to full blown show nuf HOGS and ready to go to the market. Next time I see them is in the meat market wrapped in a vacumn packed container. I pick them up and inspect for the quality and quanitity of the fat, if there is very much at all I put it down because I know it could not be one of my doses, delivered 9 months ago. I find the Bryan Foods brand and I am pretty sure it is one of ours, at least there is a 70% chance since we are 70% of the packer's business. The good Lord placed that animal on this earth and gave we humans the responsibility to sort through the lot and decide the fate of all. Had some mighty good ribs last night! My favorite is the "baby back", slow cooked over a gas grill.

    I have had a Blessed day and a safe one to this point. Ya'll drive careful going home,now and may your day also be Blessed!

    PORK
  • We combine recruitment with retention. Total payout is $500 - $100 at time of hire, $200 after 90 days, $200 at one year. Seems to work pretty well for us.


  • Thank you for your responses. Since we usually just pay $100 at 90 days, I didn't think about incorporating the $'s over an incremental period. Thank you - great advice. x:-)
  • We pay $100 after 90 days, regardless of position or level of desperation. x:)
  • We have the same as Parabeagle, $100 at hire, $200 at 90 days, and $200 at 1 year, we also give a $500 to every new hire when they reach their 1 yr anniversary.
  • You've probably already thought of this, but I didn't - tunnel thinking on my part I guess. Our Operation Manager just provided me with a pitfall for my categories. By advertising the different categories, current employees may think, "hey, my position is hard to hire, so I've just increased my bargaining power when it comes to benefits, wages or behavior. Woohoo!" I certainly don't want this to happen (I just want to increase excitement, not mutiny x;-) ), so I'm going to eliminate the categories and just make a straight across the board increase from $100 to $500. The $500 will be paid out in $125 increments (every 3 months) over the course of 1 year of consecutive employment. If the referred employee or the employee providing the referral leaves before the year is up, then the $ go back into the coffers. I've got some other rules as well that I'll advertise. Thank you again for your responses. x:-)
  • We offer $400 for full-time and $300 for part-time, after the new hire has worked 60 months and providing the employee who made the referral is still employed. HR and hiring managers are not eligible.
  • MrCreosote

    "...after the new hire has worked 60 months..."

    Wow, 60 months huh? x:D
  • YEA!!! That is 5 years; I doubt I would ever pay out a recruiting bonus one or the other will be gone!

    PORK
  • We pay a flat $500 for any employee referral, payable after 6 months.
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