How Do We Start a Referral Bonus Program and Choose the Right HR Software for Our Growing IT Company?

Hello Everybody :D,

Need your suggestions and help on a few issues. We are a newly started IT company with about 80 employees. I need to start a Referral Bonus scheme now as we are in the process of expansion. Can someone suggest to me how to go about it, I mean the best practices in the industry?

Also, it would be a great help if someone could suggest some good "HR Software" which takes care of different aspects in HR like recruiting, payrolls. I would appreciate it if someone could help with these.

Hi Rajendra,

By referral scheme, I am assuming you are referring to the Employee Referral scheme. Here are a few pointers which you can make use of while designing a good scheme:

1. All employees except the direct supervisor of the recruiting team can participate.
2. All referral resumes should come as mail attachments to the HR Dept; just telephone numbers or mail ids will not be entertained. In case of 2 employees sending in the same resume, the one that sends the resume to the HR first prevails.
3. Fix the percentage of CTC you will pay as an incentive in case a reference turns into an employee.
4. Fix the timeline by when the incentive would be paid to the employee.

Hope this helps.

Sherine

Hi Sherine,

Thank you for the help. Could you please provide more specific information on Points 3 and 4, i.e., what are the normal standards that are followed?

Hi Rajendra, I will not be able to comment on the normal percentages, but I think the least you offer should be one month's basic. Here again, you should take into consideration the salary level of employees and make it motivating for employees.

As for the time for payment of the bonus, one month after the employee joins is good enough with a condition that if the person recruited quits before three months, the employee needs to return the incentive.

I would request other members also to put in their experiences and suggestions.

Sherine