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.
