I'm working in IT company, as its newly start company, i'm in process of many policies. in that one is employee referral bonus.
i wanted a information about employee referral Bonus, how other companies follow the referral bonus. and how to do the measure to give bonus, is there any specific budget set for that.
7th March 2018 From Republic of Korea, Seoul
Hi Anitha,
Employee Referral Program is very effective in most of the organizations and it benefits both the employer and employees.
For Employer:
Can get profiles for suitable positions in short time.
Employees would refer reliable candidates
Can cut down recruitment cost to third parties
For Employees:
Can refer friends for suitable positions
Can earn extra money as referral bonus
Referral Bonus Pay-out: The referral Bonus pay-out is key to motivate the Employee referral program. In general, companies would pay the bonus to employees once the candidate successfully completes 3 months in the company. The pay should happen immediately after this.
Budget Allocation: The recruitment budget should be done annually say, x number of hires for this and the optimum source for it.
Please design a suitable percentage to determine the bonus pay-out. As you look for software and senior software engineers, there can be slight variation in the bonus pay-out for both the roles.
Also track the referral program performance as below.
No. of employees participated in the program (who referred candidates)
No. of optimum referrals (some employees just share the profiles though, the candidate is not suitable)
Recruits through this program
Total bonus paid
Compare the bonus with actual amount that would have been paid to third party or to any other source
How long the referred employees stays in company
Overall performance of the program
If you see positive results from this, try to motivate and promote so that the value has been generated for both employer and employees.
You can think of rewarding the best referrals and honor a certificate in meeting where all employees present. This motivates and drives good results.
So, take these as objectives and design the process flow and for sure build a metrics to measure this.
My best wishes,
Regards'
Thiyagu
7th March 2018 From India, Bengaluru
Hi Thiyagu,
Thank you for your valuable information.
Best Regards,
Anitha
7th March 2018 From Republic of Korea, Seoul
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