Best practices employee referral program bonus strategy


Published on

Rewarding employees in an employee referral program is very essential to maintain a higher participation level in the program. Employee referral programs are valuable but when combined with the right reward management system can prove to be a great recruiting tool for organizations. Consider these best practices to chalk out an effective employee referral bonus strategy for making your referral program successful.

Visit to explore more on employee referral reward strategy techniques to design your referral program in the right direction.

Published in: Business, Technology
1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Best practices employee referral program bonus strategy

  1. 1. Best Practices: Employee ReferralProgramBonusStrategy Best Practices Employee Referral Program Bonus Strategy
  2. 2. Best Practices: EmployeeReferral ProgramBonusStrategy Bonuses are considered as the biggest motivator for employees to refer candidates, but the main focus and discussion should not only be the quantum of bonus but also on the criteria and modalities of payment. INTRODUCTION
  3. 3. Best Practices: EmployeeReferral ProgramBonusStrategy  Roles that require highly specialized or niche skills or people with specific domain experience will need to be offered higher bonuses to justify the time and effort needed by employees to search among their connections for people with the required niche skills.  Jobs for which people with the required skill sets are relatively easily available can be offered lower incentives. Some Points To Ponder Upon:
  4. 4. Best Practices: EmployeeReferral ProgramBonusStrategy  A general thumb rule while deciding on the referral bonus is to peg it at 20-25% of the normal cost of hiring for that role through an external agency.  It is also important to keep in mind that the referral bonus should be perceived by employees to be a good enough amount to justify his or her time and effort in referring candidates and should be in proportion to the value it brings to the organization. Some Points To Ponder Upon:
  5. 5. Best Practices: EmployeeReferral ProgramBonusStrategy  Plan a hiring budget against each job description. This allows organizations to implement a tiered employee referral bonus program which rewards every employee who has made a relevant referral.  This acts as a great motivator to draw more referrals. Employee whose referral is finally hired is rewarded with the highest bonus, while employees whose referral make it to the final list but are not hired get a lower portion and so on.
  6. 6. Best Practices: EmployeeReferral ProgramBonusStrategy  Cash incentives are not the only ways to motivate employees. Small gifts like gift cards or t-shirts or other merchandise offered on a regular basis help to keep employees engaged with the hiring process.  Another way is to offer employees who have referred candidates an opportunity to participate and win in a larger prize draw like a laptop or a TV or a holiday etc.
  7. 7. Best Practices: EmployeeReferral ProgramBonusStrategy  Offering employees the opportunity to contribute their referral amount to a charitable cause attaches a higher value purpose to the employee referral program which in turn helps to draw more employees to this.  Attach a supplemental referral bonus amount for positions or roles that are hard to fill as they require specialized, niche skill sets.
  8. 8. Best Practices: EmployeeReferral ProgramBonusStrategy  If you are looking to hire fast for a position, a good option is to introduce limited period bonus add on for referring candidates upto a specified date post which the supplemental bonus is removed.  Lastly, companies have gone beyond referral bonuses to recognize employees who have contributed significantly to the success of employee referral program by felicitating them at office functions or with handwritten notes from senior leaders.
  9. 9. ZALP is just a click away ( These best practices if used in your employee referral program bonus strategy can help you set up your referral program policy in place. If you need any other help in setting up your employee referral program, You may also opt for a free consultation on improvingyour referral program results. Our employee referral specialists would be glad to help.
  10. 10. For more information, visit To book a consultation appointment,drop a mail to You may also call us for any other assistance 1-866-217- 1267 The Employee Referral Booster