How Can I Develop an Effective Employee Referral Policy for New Hires?

Hi HR professionals, I am Kuldeep Singh, working in a medical device manufacturing company. I want to create a policy for recruiting new employees through referrals from existing employees, which I will call an "Employee Referral Policy." Kindly help me with this.

"Bring Your Buddy Policy

The policy may be named "Bring Your Buddy." If there is any reference and the candidate is selected, the organization may offer 5% of the monthly gross or ₹10,000/-, whichever is lower, after 3 months of the candidate joining.

Regards, S K Bandyopadhyay"

Recruitment Fees and Employee Referral Policy

Generally, recruitment fees paid to an outsider (professional firm) are one month's salary or 8.33% of the annual salary. For in-house recommendations, you can offer a lower amount. Generally, offering less than half a month's salary will look unattractive. If you are not linking with the salary, then offer a fixed amount per hire. Another option would be a percentage of the annual salary subject to a ceiling.

You need to consider what works best for your company (and industry) while being attractive enough to encourage people to recommend.