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Tips For Employee Referral Programs

How to get your employees involved in finding additional help

With unemployment rates hitting rock bottom, you may be scrounging to find good, qualified employees. One idea: Offer cash bonuses as finders' fees. Rewarding your staff with bonuses for referring prospective employees offers a range of benefits, including potentially higher-caliber candidates, lower search costs and improved employee morale. If you're considering implementing a referral bonus program, try these tips:

  • Keep the program simple.
  • Avoid limiting referrals to certain employee groups or job categories.
  • Publicize the program among your employees on an ongoing basis. This will maintain their interest and keep them thinking about prospective candidates.
  • When determining the amount of the bonus, consider the level of the position and the fees you might have paid to an employment agency or a headhunter.
  • Be sure your employees understand what information (resume, employment application, referral card and so on) must accompany each referral.
  • Follow up every referral with a written response that lets the employee know the referral was received and appreciated.

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