Talk to any company having difficulty recruiting people with special talents and invariably they’ll come to one conclusion that their employee referral program isn’t “rich” enough and that doubling the referral bonus will ensure that the names of great people will suddenly come be streaming into HR.
Are you kidding me?
The core problem is, of course, how the referral request is made and this is directly related to the position title and its job description. Here’s what most employees hear when approached for referrals…
Do you know any software developers who might want to work here?
Typical response:
“Uh, not off the top of my head but let me think about it.”
Doubling the referral bonus might get them to a different response level:
“Not off the top of my head but let me think about it.”
At a later date I’ll get into the actual tactical elements of my preferred employee referral program but for today, I want to focus on a piece that is missing in all programs I’ve ever heard about (obviously I can’t be everywhere so if this is done somewhere I’d like to know about it): The performance incentive factor.
I think it’s downright silly that companies pay large sums of money ($5K-$10K) for “hard to find” people only tied to 91 days of tenure. Like investing in Facebook stock on the first day of its IPO silly.
Ponder this: For every employee hired through a referral program, develop 180 day performance objectives and if the employee hits these, double the referral payment to the referring employee AND give the referred employee some kind of bonus.
How would this fly in your company?
The Recruiting Inferno 
You are so correct Steve. If someone loves his job and respects his company, he will easily think of people to refer regardless of the referral money, because at the end of the day; money is not the carrot.
LikeLike
For centuries military organizations around the world have rewarded those who risk their life with a worthless trinket they can wear on their uniform. For people with a passion for what they do, money is not the biggest motivator. Most employee referral programs fail because the bounty is set so high that administration becomes cumbersome. Legalistic rules, with HR set-up to be the rule police, gives most employees a “why even bother” attitude when they are made to feel like some kind of money grubbing insect by participating. Don’t double up…do away with a bounty altogether! How about a T-Shirt announcing “I REFERRED A NEW EMPLOYEE” which not only gives recognition but is a walking advertisement for the program. For referral of a hard-to-find superstar, give a spot bonus as you would for any other job well done.
LikeLike
Tom, how many people like us would be happy receiving a shirt? Sadly, not many. But the spot bonus isn’t the answer either because it’s all about referring people that SHOULD be hired not simply the referral. I don’t think the presentation of service ribbons, campaign stars, etc. is on the same level as referral bonuses; the Code of Conduct taken by those who serve is a very powerful reminder that service comes at a cost.
Business does too; which is why a small monetary “thank you” helps to jog people’s heads and a added “thank you” for a referral who performs beyond expectations can inspire employees to refer their “better” friends and acquaintances.
LikeLike