How To Design A Successful Employee Referral Program

Clearly Define Program Goals And Objectives

This is the first step for any new policy. What do you want to get out of the program?

“More employees” is probably not sufficiently specific. How many is enough? How will you know if your program is working? When might you stop or suspend the program? Determine Program Eligibility CriteriaThis is important both for employees and prospective candidates. Generally, people directly involved with the hiring process (such as HR staff and managers) should be excluded from the program. You might also want to place a minimum on time spent at the company.

In terms of candidates, you should make sure that they haven’t previously applied and been rejected.

Establish Program Rewards And Incentives

Making sure you understand what your reward scheme is going to look like is key to setting up a program effectively. This is for two reasons:

1. You want the benefits to be clear to your employees

2. You want to ensure that you can finance the program, and that you understand its potential impact.

Set Program Guidelines And Rules

Just like making sure your program is accessible, you want to make it clear to your employees what will and won’t get them their bonus! Make sure you’re only granting bonuses to employees when their referrals succeed,and also let them know when to expect their bonus/reward.

Promote The Program Effectively

Don’t just send a half-hearted memo out — make sure your employees know about the program! Team meetings, department conferences, and other kinds of lower-level meetings are great places to make sure the information gets across. Putting up posters in the workplace (if you have a physical office) can also be a great choice.

Provide Ongoing Communication And Updates

Mention the program regularly in your correspondence. Give some numbers out if you can, too, to show that the program is being used! This can help encourage more employees to get in on the action.

Make The Program Easily Accessible And User-Friendly

Your employees aren’t going to use the program if it’s hard to get into. Make it as easy as possible — and make sure your employees understand what you’re looking to recruit for! If you tell your employees about effective ways to apply for a job (such as choosing the right CV or resume), not only will they appreciate you helping them develop further skills, but they’ll pass it on to those they refer, too!

Monitor Program Performance And Track Metrics

There’s not a lot of point in having a referral program if it doesn’t work, or isn’t economical. Making sure you’re keeping tabs on the program will help you decide if it’s worth keeping as is, needs changing, or should be gotten rid of entirely.

Setting up a review later down the line is a good way to make sure you properly analyze the data you collect.

Continuously Evaluate And Refine The Program

There are always improvements to be made — don’t leave your program alone! If you need to fill a certain role, pivot it to give more incentives to candidates. If you’re noticing the bonus is less attractive, consider reframing or increasing it.

Recognize And Reward Participants And Program Champions

Just like providing ongoing communication and updates, recognizing and rewarding people who use the program will encourage others to take part as well.

The Bottom Line

So now you know a bit more about employee-referral programs! If you’re looking to further streamline your recruiting process, why not try out the Shine Interview software? Schedule a free demo and explore our great solution for a professional online interview which helps you screen and sorted candidates easily so you can get to the right hire faster.

Give it a go today and let us know how you get on!