I would like to know whether a successful employee referral program can run without monetary incentive for selected candidates.If yes, how? Also for decentralised set-ups where there is no central resource for screening the 'n' number of profiles sent by employees how do the recruiters shortlist CVs referred by existing employees?

From India, Mumbai
Consultant, Writer And Trainer
Hr Manager
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hi rukmini,
yeah it can run witout the monetary incentive.
after recession phase people are intersted to find out the job with some stability. Bcz of that they prefer to join company which is refered by personnal connection rather than recruitment agencies.
if your employee know someone who qualification & experience matches with job position defenately he/she would refere him/her,to oblise or to help out own relative.
I write whatever I think, they might be conflict from others.
other views are also invited.

From India, Pune

If not monetary than non monetary incentives( which just means not in cash or cheque) have to be there in order to make employee referral a successful program.

What would be the motivation would you expect a good quality of referrals and serious referrals from your employees then??

Many organisations provide gifts, such as vacation packages, cell phones, i pods, etc.

I came across a very nice article on Google about Employee referrals, its like a complete checklist of what an organisation do or should not do.

Here is the link and some excerpt:

Common Problems Associated With Referral Programs Even established employee referral programs run into problems. Some of the most common ones you should plan for include:

Recruiting managers assume that the status quo program is working, without constant monitoring and evaluation using metrics.
he program suffers from cumbersome administration, rules, and regulations.
The volume of referrals isn’t managed carefully, which causes “chatter” to obscure quality candidates.

The reward for referrals is nonexistent or is too low to effectively induce referrals.
The referral process requires that a resume be presented before a referral can be processed.

The marketing aspect of the program is not “re-energized” periodically.
Inadequate mechanisms are present for resolving disputes over who “gets credit” for duplicate referrals.

Referrals are underutilized (or not supported financially) because of a misguided “feeling” that they have a negative impact on diversity.

Individual recruiters ignore or underutilize referrals (because they didn’t source the candidate themselves).

The reward process offers slow, split, or delayed payment of referral bonuses.

Even though employees might have good intentions, the program fails to educate them about where and how to find referrals and how to “sell” the firm.

Non-monetary recognition is underutilized and minor awards or recognition are not provided to employees with unsuccessful referrals.

Too many non-key jobs are included in the referral program.

The referral programs is not integrated into other recruiting and HR programs.

There is no process to handle individuals who abuse the referral program or violate its guidelines.

The program fails to require first-hand knowledge and assessment of the referee’s work, and as a result, most referrals turnout to be “strangers” who need detailed assessment to determine if they are qualified.

Assessing Employee Referral Programs: A Checklist - <link updated to site home> ( Search On Cite | Search On Google )

it will surely be of assistance...:)


From India, Delhi

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