This document summarizes the key outputs from a focus group discussion on employee referral schemes. It outlines the benefits of referral schemes such as increased candidate engagement, cultural fit, and speed of hiring. It then describes typical referral payment structures ranging from £75 to £5,000 depending on the referred candidate's role. The document also discusses common referral scheme terms, typical referral ratios of 10-40%, challenges faced, and tips for running a successful referral program.

1. Focus Group Outputs
Employee Referral Schemes
24/05/12

2. Why have a referral scheme?
• Candidate Engagement
• Cultural Fit
• Speed of hire
• Quicker assimilation for new starters
• Employee engagement
• Reduction of absence and attrition
• Successful cross border recruiting
• Cost Effective

3. Typical Referral Payment Structures
School Leaver - £75 Leather jacket with ‘I’m a talent
magnet embossed on the inside’
Clerical - £150
Entered into global draw – top Payment ranges from following
Tech/professional - £300 10 referrers win £25,000 dependant on work level
Payment after 6 months payment £250
£500
£2,000
£1,000 – PA/Admin Admin £500 £4,000
£2,000 – PA upwards Management £1,000 Paid in full after one month
£3,000 – Partner Senior Manager £1,500
50% paid after 3 50% paid after one month and
months remaining 50% rest after probation
after 6 months £1000 flat fee paid after successful completion
of six month probation period
£2,000 – graduate £500 flat fee paid after one month
£3,500 – professional
£5,000 - Management
£3,000/ $5,000 payment regardless of level. Global
scheme so flat payment in each country

4. Typical ERP Terms
• Recruitment exempt
• Senior Managers often exempt
• Anyone involved in recruitment process exempt
• HR typically exempt although some exceptions
• Predominantly paid after probation period although increasingly after one
month to reduce the time it to takes to reward the referrer
• Mainly referrals were for specific roles although some companies allowed
talent pool referrals especially for priority/ hard to fill/ volume job areas
• Permanent employees only eligible
• No-one currently offering alumni/ non employee referral payments
although a couple of companies looking into it

5. Typical ERP Referral Ratios
25% 10%
25.85%
30%
14% 30%
40%
16%
25%
Ideal ratio would be around 30% to ensure no knock on impact on diversity

6. Challenges
• ATS complexity letting the process down
• Quality of referrals
• Role specific or generic referrals?
• Not just refer a friend, more refer a contact!
• Keeping the scheme front of employees minds
• Diversity – no more than 50% referrals

7. ERP Top Tips!
• Make the referral process as simple as possible i.e. No more than two
clicks to refer!
• Simple and clear policy
• Link to EVP objectives
• Run referral open evenings!
• Relax rules for a period of time for priority/ hard to fill roles
• Use your employee forum to understand how employees want to be
rewarded
• Senior Stakeholder support
• Continuous marketing and communication strategy
• Reward should be realistic, competitive and timely

8. Many thanks to the FIRM
members who contributed
to this focus group!