How Do Referral Schemes Work in the Service Industry? Let's Exchange Ideas!

Hi All,

I'm interested in understanding the referral schemes followed in the service industry. In our organization, it's an unstructured mechanism, but I want to know how the referral mechanism works and the referral amount limits which form the basis of the level of position. It would be really great if someone could exchange views on it.

Thanks,
Rachita

Hi Rachita,

Since I am an HR in a BPO, I can tell you that the referral amount differs from company to company. In my company, the amount that an employee gets for each referral is Rs. 5000, but the referral should complete 3 months in the organization only then the referrer gets that amount.

If you are still not satisfied with the answer, please let me know, and I will get some more information for you.

Hi Rachita,

In the BPO industry, referrals help a lot, and at the same time, attrition will also be at a quite good rate if it comes through a referral. Most of the big companies start from 5k, and it goes to 10k depending on the numbers that they provide. For example:
- 1-3: > 5K
- 3-6: > 7K
- 6 and above: each candidate will get 10k

If you need some more information, please do reply.

Regards,
Harinath R

Hi Rachita,

I hope I am not too late in replying to your post. I work in a manufacturing concern. We have a referral scheme which we have branded as Buddy Getz Buddy. Under our scheme, incentives can range from 10k to 20k. There are also some rules about the scheme as follows:
1. The amount will be given only after the referral completes 6 months in the organization.
2. The referrer should not be the immediate manager, any HR representative, or GM & above.

We also give an appreciation letter to the referrer.

Thanks,
Ligy Jose

a) Calculate the percentage of hires through referrals versus headhunters or other media involved. This analysis should include time and money saved, measured in the same way you assess process metrics.

b) The incentive for employees should not be too low compared to the amount paid to headhunters. I have observed instances where even HR managers route direct applications through consultants to earn money.

c) "Birds of a feather flock together": Do not allow average or below-par employees to give referrals.

d) If possible, perhaps one to two years down the line, encourage referrals from your vendors, supply chain partners, employees' families, etc.

Surya

Hi Rema,

I am Rema. Can anyone help me in getting a good format of an agreement to go with a placement agency? Also, if anybody can provide a list of important and effective placement agencies in South India, it will be highly appreciated.

Regards, Rema
Email: remapurayampilly@gmail.com