Passing The Bucks
Offering referral bonuses can help you nab better employees.
Entrepreneur magazine, November 1998
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, law firm Wessels & Pautsch PC in St. Charles, Illinois, offers 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.
Wessels & Pautsch PC, 2035 Foxfield Dr., St. Charles, IL 60174, (630) 377-1554
Jacquelyn Lynn is a business writer in Winter Park, Florida.