Need Help with Employee Referral Policy? Can Anyone Share a Sample?

Dear Sir/Madam,

Could anyone forward me a sample employee referral policy?

Regards,
Vinay

Dear Vinay,

Employee referral schemes pertaining to recruitment depend upon the nature of the industry. Some industries that are more manpower-intensive always fall short of manpower. Under these circumstances, the HR department always remains under pressure for recruitment and retention of employees. Employee referral schemes play a significant role in this context, with both positive and negative impacts on the organization. Negative impacts can never be eliminated, but they can be minimized to further consolidate the scheme.

If you are in the process of formulating an Employee Referral Scheme, please consider the following points:

1. The policy should be designed for a specific category of employees to maintain professionalism in the company.

2. Employees must be informed of the parameters expected by the company from new recruits.

3. Monetary benefits can be shared with the employee whose recommendations helped the organization finalize the selection of a candidate.

4. These monetary benefits can be shared in several stages, e.g., 15% of the hiring cost may be paid to the concerned employee upon the new employee's joining, another 25% after the completion of one month of service by the new hire, and the balance after three months of service or after the employee's confirmation into the company's services.

5. The rationale behind the above is that the recommending employee will assist the new hire in understanding the organizational culture, thereby reducing the settling-in time.

6. The background of the new selection can be verified through the present employees.

7. The recommended employee should have a minimum of two years of service in the organization.

8. Employees who have received a warning letter or have been charged in the past should be excluded from the scheme.

9. Not more than two recommendations should be accepted from one employee during a year. The number may vary depending on the organization's requirements and current workforce.

10. Negative impacts such as unionism may arise in the organization. Unity among acquaintances is stronger compared to independent referrals. Psychometric impacts on known cases are more effective and may lead to frustration and demoralization.

These are my suggestions for the scheme. I hope this will assist you in formulating the scheme.

Regards,

Anil Anand

Dear Anuradha,

Thank you so much for the referral program template. I just want to know: Can we pay a lump sum amount at one shot itself, at the time of enrolling referred employee?

Thank you,
Tehzeeb

Can you tell me what the professional fees are charged per employee background check, i.e., Educational Background, Employment History, which includes two employer references?

Kindly revert to: myjobmantri@gmail.com

How does a referral policy work for a referral shared by someone who has been offered but yet to join the company?

Thank you for reaching out with your question about how a referral policy functions in the scenario where a referral is made by an individual who has received a job offer but has not yet commenced employment at the company. In such situations, the specifics of how the referral process is managed can vary depending on the company's policies and procedures. Typically, if a referral is made before the individual officially joins the company, the referrer may still be eligible for any rewards or benefits outlined in the referral program once the new hire successfully starts their employment. It is essential to review the company's referral policy or consult with the HR department for precise details on how referrals in this situation are handled to ensure clarity and understanding for all parties involved.

If you have any further questions or need additional information on this topic, please feel free to ask.