Benefits of Performance Management System A good performance management system always works in improving the performa... Read More
Employee Referral Program Policy - A brief Summary and How it Works
To reap the best employee referral advantage of the best referral program it is necessary to introduce it well to the employees. Creation of clear guidelines on how employee can participate in such program can make it a real success. This policy contains the details about the objective, purpose and guidelines which are to be followed for making a successful employee referral.
What is an employee referral?
The employee referral policy simply means a process of recruitment wherein an existing employee refers a candidate for an opening in the organisation. It is one of the most prominent sources of recruitment. If we want to understand referral programme meaning we can say, the employee referral program is designed keeping in mind equal opportunity for all employees to refer their candidate. Through this policy we make it very clear that we have confidence in our employee judgement and our employees understand our organisation culture and requirements very well. It is one of the best sources of hiring however it needs to be transparent and right.
Why an organisation must go for employee referral programme?
- Qualitative Hiring: Employee referral is qualitatively best source of hiring as employee making a referral is well known with the organisational culture, they refer someone who can make the best fit in the organisation professionally as well as culturally. Employee referral scheme thus helps in qualitative hiring.
- Increase speed of hiring: Employee referral speed up hiring as it saves recruiters time spent in selling the position to a new candidate. Internal referral speed up hiring process.
- Boost employee moral: It boost employee moral as employee feel good and important as they are contributing positively in employee recruitment also referral incentive in employee referral also an important factor in boosting up moral.
- Brand Image: It increases the brand image of the company. It is an employee referral advantage.
- Cost effective: It is one of the best way to reduce cost spent in employee hiring through an external source.
Below mentioned employee referral template explains the employee referral programme in detail. There can be various employee referral programme examples wherein referral is paid differently in different companies. Some firm pay money, days off, ticket for an event, any trip etc. however still as per employee referral example shared in employee referral template above shows the most commonly used employee referral in organisations. According to employee referral definition an employee is being rewarded for providing good quality resource to an organisation. As per one of the survey it has been found that maximum employee referral is in the organisation which pay good amount of incentive for making a referral. It has also been found that the employee who refers become more loyal for the company they are working for. Lately there have been employee referral examples wherein different software tools are in use as by using certain tools referral process can become more organized, also the element for being fair is also not compromised by using a reliable software tool.
Disclaimer: The content prepared has been created with greatest care. These policies have been prepared for sample. However for accuracy and completeness hrhelpboard.com cannot guarantee. The user is therefore requested to professionally check or to have professionally checked the suitability of all content for its use.
Employee Referral Program Policy Sample Template
What is an employee referral ?
6. Guidelines for employee referral
|1.||An existing company employee refer a candidate by adhering to employee referral policy||Sending approval to HR for payroll processing||Employee referring the candidate|
|2.||The Complete review of the details by the recruitment team||4 Days||Recruitment Team|
|3.||To get the hiring approved from HOD, immediate manager and send to HR.||5 Days||Recruitment Team|
|4.||Payment approval was taken from Head HR||
|5.||Sending approval to HR for payroll processing||5 Days||Payroll Team|
Objective: The objective of employee referral program is to attract a candidate for a given job opening by involving existing employees. This method helps in the recruitment of right candidate which is the need of the company.
Purpose: The purpose of this employee referral policy sample is to award the employee who has referred a candidate for a particular position in an organisation.
What is employee referral programme policy?
The employee referral programme policy is a process wherein existing employee can forward a candidate profile for an opening in the organisation they are working for.
What is employee referral bonus programme?
Employee referral bonus programme can be explained as a program wherein employer reward an employee with certain amount of money for suggesting a candidate for a particular vacant position in the company and the candidate finally get selected or hired.
What is internal referral?
Internal referral can be defined as a term used when an employee suggest a candidate for an internal vacancy within the organisation and the candidate is being hired.
What is referral incentive?
The amount of money being given to an existing employee for referring a potential candidate is known as referral incentive.
Eligibility: The employee referral policy sample is applicable to all the regular employee of the company except the HR employees, the senior management team and the hiring manager for a particular vacant position.
- The employee referral policy is applicable to all the regular employees of the company.
- The referrer employee must fill the referral form and submit it to HR before the entire recruitment process starts. This is the beginning step of employee referral programme policy.
- The employee referral form must be checked in properly and duly signed by the referring candidate before submitting it to HR department.
- The role of the employee who is referring the candidate is limited to deposition of resume. Interview and other formalities will happen as per the normal process of recruitment only. This is necessary to set up a benchmark for best referral programme.
- Referral amount will be paid on completion of 3 months from date of joining of the candidate. The amount will be processed with the completed month’s payroll.
- Both the existing employee and the referred candidate should be on the payroll of the organisation and must be active employees of the company to take the benefit of employee referral bonus programme.
- In case of duplication of referral amount, the employee who has first referred the candidate will be given preference. The first employee will be eligible for internal referral.
- In case a candidate directly come and submit resume, it will not be considered as employee referral.
- Employee would not be eligible for any referral amount in case candidate resume already exists in company’s databank. This clause is under the employee referral scheme.
- Selection of referred candidate depends on merit. Making a referral does not mean final selection.
- In Case the referred candidate has to work under the employee who has referred him in 3 months of joining no referral will be paid in this case. This is as per the employee referral scheme.
- In case the candidate has applied before the employee has referred him in such case no employee referral will be paid.
- If employee resigns within the time duration of employee referral period, no employee referral will be paid to employee.
- Only the candidate who meets the qualification required for a given position will be eligible for employee referral. The best referral programme nowhere justifies any biased recruitment process.
- Referral should be made from the employee contacts only, no referral should be made with the help of any recruitment agency.
- There is no limit for the number of referrals made by the employee.
Approval Required: Any referral need approval from the following
- Head of the department
- Human resource department
Process for Employee
- Job opening is posted on company intranet page. Notice for the same is also posted on notice board. Notification for job opening can also be shared in meetings etc.
- Employees view the vacancy details on intranet/Notice board.
- Employee refer the candidate if he/she has someone in contact by filling in the employee referral form
- Employee’s fills in all the details in the employee referral form and attaches the updated resume of the candidate and submit it to the recruitment department.
- Recruiter crosscheck the details of the candidate and if the skills matches with the job description and other details found relevant, the recruiter sends the form to Human resource and Head of department for approval.
- Recruiter coordinates with the referred employee for interview.
- The referred candidate undergoes normal interview and selection process. If selected, referred candidate is being notified for the same.
- The recruiter sends the details to HR department regarding the referral amount to be paid to the employee who has referred the candidate after 3 months of joining the referring candidate.
- Human resource make a note of the same in their tracker and process the referral amount once 3 months are completed by the referred employee.
Revision of the policy
The company reserves the right to revise, modify any or all clauses of this policy depending upon demand of business.
Explanation of the policy
Corporate HR department will be sole authority to interpret the content of this policy.
How to identify and apply performance management to get the best output from it? Performance management is one of the... Read More
What is whistleblowing? Importance and benefits of whistle blowing policy in Business Whistleblowing is ver... Read More
Job Analysis in hrm is a systematic exploration of a job, which not only helps to make a detailed description of the par... Read More