Build a Stronger Employee Referral Program
by Kate Gautier and Lalith Munasinghe
Summary .
Because the value of hiring referrals is really in the information the referrer brings to bear, job applicants and hiring teams need to ask key questions of referrers. Job applicants should know how long their contact has worked at the company and whether they’ve worked in a similar role to the open position. Hiring teams should ask referrers if they’ve worked with the candidate in the past, how they know each other, and for how long they have known each other. This information can be incredibly valuable to the hiring process. And ultimately, it will enable employees to reach their full matchmaking potential, resulting in faster screening, lower turnover, and better hires.
You’ve probably heard that internal referrals result in better hiring outcomes. Research has found that referred candidates are of higher quality than applicants from the general public and are more likely both to receive and accept an offer, stay at the job longer, and perform better. This all adds up to spending less time on the hiring process, reducing turnover, and increasing overall productivity. But not all referrals are equal.
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Employee Referral Program Template for PowerPoint
The employee referral program template for PowerPoint is an animated animated theme with chat box designs to enter your points. Step diagrams are the most effective slides in business presentations since they have a clear vision and straightforward layout. In the white background, it seems colorless even if the center mockup mobile slide with green and yellow shades is there.
But see the magic when you switch to a black background slide. It provides a glittering effect in the dark mode. You can use these templates for employee referral examples during your business presentations. Download these creative PowerPoint templates now!
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Our templates work smoothly with Microsoft PowerPoint and Google Slides. Moreover, they’re compatible with Apple Keynote, LibreOffice Impress, Zoho Show, and more, ensuring flexibility across various presentation software platforms.
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Capitalize on our presentation template for MS PowerPoint and Google Slides to describe how an Employee Referral Program helps source candidates who perform better and stay for a prolonged tenure in the company. The stunning graphics provided in this deck will spellbind your audience!
HR professionals and personnel managers can showcase the tips and techniques for creating an effective employee referral program. Include these graphics in your slides to highlight the stepwise process of designing a team’s employee referral program. You can shed light on the benefits and uses of this referral program. You can further highlight the importance of these programs in reducing recruitment costs and promoting a positive work culture and trust among staff.
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Bust | 79.5cm / 31" | 82cm / 32" | 84.5cm / 33" | 89.5cm / 35" | 94.5cm / 37" | 99.5cm / 39" |
Waist | 61.5cm / 24" | 64cm / 25" | 66.5cm / 26" | 71.5cm / 28" | 76.5cm / 30" | 81.5cm / 32" |
Hip | 86.5cm / 34" | 89cm / 35" | 91.5cm / 36" | 96.5cm / 38" | 101.5cm / 40" | 106.5cm / 42" |
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Neck | 37cm / 14.5" | 38cm /15" | 39.5cm / 15.5" | 41cm / 16" | 42cm / 16.5" | 43cm / 17" |
Chest | 86.5cm / 34" | 91.5cm / 36" | 96.5cm / 38" | 101.5cm / 40" | 106.5cm / 42" | 111.5cm / 44" |
Waist | 71.5cm / 28" | 76.5cm / 30" | 81.5cm / 32" | 86.5cm / 34" | 91.5cm / 36" | 96.5cm / 38" |
Seat | 90cm / 35.4" | 95cm / 37.4" | 100cm / 39.4" | 105cm / 41.3" | 110cm / 43.3" | 115cm / 45.3" |
How to Design an Employee Referral Program (with Examples)
Posted by Grant Robertson-Adams | Last updated Aug 10, 2023
When most people think about referral programs they think that they’re aimed at current customers as a way of using their network to bring in new customers. Well, they’d be right to think that, that is exactly what they are, but they can also be used internally in a company and set up as an employee referral program. In this article, we explore how you can design an employee referral program that is effective and gets results. We’ll also throw in some examples that companies have used in the past to get great results.
What is an employee referral program?
Using a similar setup to a typical referral program, an employee referral program offers employees an incentive in exchange for referred candidates for available positions within the company. The concept is that your own employees know the type of person that they want to work with, they know the skills required, and are unlikely to select poor candidates that could negatively impact their work environment.
Each employee referral program is different and needs to be designed with the business, roles, and employees in mind. There needs to be a degree of research and planning conducted before launching into a campaign, but once created they can be a superb source of qualified candidates.
So the long and short of it, rather than referring you new business, they’re referring you, new employees.
Benefits of an Employee Referral Program
Bringing your employees onboard to your recruitment process can bring a number of benefits to your business, such as:
- Higher conversion rate for new hires: When candidates are referred they are usually hired a third of the time.
- Quicker hiring rate: As candidates are already known by the company (through the employee), chances are that they know some of the hiring processes already, this makes for a quicker time-to-hire process.
- Higher employee retention rate: It’s a known fact that when customers are referred to a business they’re more likely to become retained customers, the same is true for employees that are referred, they are far more likely to stay with the company for a longer period of time. In fact, referred employees are 13% more likely to stay after their first year of employment compared to regularly hired employees.
- Better employees all round: Referred employees are far more likely to hold the same company values, have the required skills, and fit into the company ethos vs normally sourced employees. Furthermore, it has been found that referred employees bring 25% more profit than other employees.
- Increased employee engagement : When participating in employee referral programs, those employees are significantly more likely to be more engaged with the company .
- Reach candidates not actively looking for a new role: Otherwise known as passive candidates, these are the excellent candidates who are within your employees’ networks. They might not be actively looking for a new position or role, but when referred to one by a friend, they’re more likely to consider it.
Essentially, having an employee referral program means that you’re able to find a better quality candidate, who is more likely to stay as your employee, who’ll be a better employee for you, whilst keeping your current workforce engaged and acting with initiative within your business. It certainly makes sense to consider launching one.
How to Start an Employee Referral Program
Starting an employee referral program is a bit different from starting a standard customer referral program . You’ll need to take into account a number of factors and understand the ethos of your business, as well as any hiring policies before getting started. The most important part is to keep the whole process as simple as you can. The simpler it is for employees to participate the more likely they are to do so.
1. Confirm that management is happy with the idea
This might seem obvious, but chances are that marketing departments have a far greater sense of autonomy versus departments that are in charge of bringing staff into the company. Therefore, before even beginning the setup process, check that your management is happy to run an employee referral program.
Once it has been confirmed that the program can go ahead, it’s important that high level employees are willing to support the program. They are the ones in the company who are most likely to get the wider workforce engaged and participating in the program.
Furthermore, referral programs can be expensive to set up in the first place. So be wary that this might be something of a tough pitch if your budgets don’t yet meet the costs.
2. Build the referral process
At this point, remembering the keep it simple advice from above is at it’s most important. Remember that you’re going to be asking your employees to be going beyond their typical remit, you’re asking them to talk about work outside of work, and you’re asking them to spend some of their social currency by staking their reputation on the line by recommending friends come to join the same company as them.
When building the referral process, make sure it is as straightforward as possible for employees to participate. The best way to do this is to invest in referral program software. This not only makes setting up the referral process easy but also makes managing it in the future far easier too.
Making the process digital is a far better solution than physical drop boxes etc, especially when considering that a great number of employees are working from home in the current climate. To that end, you might want to consider creating a number of templates and materials for employees to use. These could be emails, pamphlets, letters, and more. Again, if you take the decision to invest in referral software then many of the tools have these built-in.
You should also take a look at the outward-facing side of your business, remember that when employees make a referral or talk about it to their network, one of the first things that their friends and family will do is to look at resources online. They’ll judge whether the company is a good fit for them using places like your website, and online reviews. Make sure that these are in good order, and have information that prospective employees might be interested in.
3. Get your metrics in order
It’s easy to get excited about launching your campaign and then realizing you have no way of measuring how successful it has been as you have no stats to measure it by. At the start of the campaign, come up with some goals. Ensure that these are easily measurable, quantifiable, achievable, and work towards a greater good for the company. These metrics could be:
- Increase qualified applications by 30%
- Reduce annual employee churn by 25%
- Increase candidates accepting position by 10%
4. Incentivize your employees
Referral programs work at their best when there is an incentive to take part. If you want your employees to trade their valuable time to participate in your company’s referral program then you should offer them some sort of incentive. It’s easy to immediately think of monetary remuneration, but you could also offer vouchers, free products, paid vacation days, prizes, or even charitable donations.
Although employee referral programs work quite a bit differently than customer referral programs, choosing referral incentives works about the same.
If you’re unsure what incentives to offer, then just ask them! Talk to your employees, let them know that this program is coming, and ask what type of reward would best encourage them to participate? If you’re a larger, national, or multinational company with many different smaller company ecosystems, these incentives might work best on a more micro-level with specific incentives that work for that particular workforce.
Once you’ve decided on the incentive type, another way to increase engagement is to offer gamification and/or tiered incentives. With gamification, you could create a leader board with an additional reward for the best, top 3, top 10 participants. A tiered incentive system allows you to reward those best participants by increasing their rewards after they’ve made a certain number of referrals.
However, you do the incentives, be clear on two things. How the employees can earn the incentive and how they’ll receive them. Be clear on these from the start. The last thing you want is for your engaged employees to become disgruntled when their rewards don’t appear when you said they would. With automated fulfilment, referral marketing software makes this far easier.
5. Make a big announcement
When the program is ready to launch, make a song and dance of it. Let everyone know that it has launched, you’re excited for them to participate and build some hype. Create dedicated materials that explain the process, detail the rewards, and share the methods of participation.
Once the program is well and truly established, you might even include information about it during the onboarding process for new applicants, hopefully, they’ll already know about it as they will have been referred themselves!
It’s also important to schedule reminder emails from time to time, to jog your employees’ minds that the referral program exists. Ideally, your program would be so incredible that there’s no way that they’d forget about it, but let’s be realistic.
6. Champion those participating best
At some point, referrals will start flooding in, you’ll be fulfilling incentives and rewards, and everyone is happy. Now is the time to recognize those participating the most and bring the best candidates to the company. You could keep it simple by sending out an email, you could host a whole party, or you could offer them a special reward . Make sure to fit the celebration to the company and those involved.
7. Make the referral program normal
Once the initial launch is completed, take the time to integrate the program into the normal routine of the company. Some businesses have had success with referral events, where employees can bring potential candidates to the workplace to get a feel for the company, others have hosted quarterly updates or celebrations for participants.
8. Reflect and adapt
Once you’ve completed your first stage of the program (whatever you deem that to be, usually a quarter or a year) take the time to reflect on the program, the results and understand what could be done to improve the system. Talk to the participants, gauge feedback, consider if the rewards were sufficient and appropriate then build on the foundations that you’ve built.
Employee Referral Program Examples
The employee referral program is hugely successful, with something between 40-60% of employees joining through the referral program. They deem the success of the program down to its rapid nature. New employees are onboarded quickly and then, within weeks, are asked if they want to participate and if they know anyone who would be a good fit. Most of the time, they do.
InMobi found themselves in serious need of engineering managers, and so turned to their global workforce for referrals. Their incentives were some of the more ingenious that we’ve seen. Employees were offered a motorbike or a holiday to Bali for each successful referral. The motorbikes were made to be country-specific too. When they made the country-specific referral rewards participation rate soared from 20% of global employees to 50%.
Intel found that they were understaffed when it came to women and minorities, their simple solution was to leverage their already successful employee referral program but double the incentive reward if employees referred women or minorities who went on to become employees. This shows that you can use your employee referral program to solve more than just recruitment.
Key Takeaways
Building an employee referral program can be hugely beneficial for not only your business as a whole but also the individual workplaces that make up the larger company. Take time to understand what your employees want to receive and you’ll quickly be gaining a higher quality of qualified candidates.
- Take time building out the referral process to ensure it is clear and straightforward
- Ensure you incentives are appropriate and consider varying them per part of the business
- Remind and champion those participating to ensure the best engagement
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6 ways to build an employee referral program that works
Creating an effective employee referral program involves explaining job requirements, keeping employees updated, acknowledging good referrers, offering a mix of incentives, enhancing the user experience in the job application process, and experimenting with various referral tactics.
Nikoletta holds an MSc in HR management and has written extensively about all things HR and recruiting.
An employee referral program can be a superior recruiting tool: referred candidates are typically cheaper and faster to hire and stay at their jobs longer than traditional hires.
How to make your employee referral program effective:
1. explain job requirements.
Employees don’t instantly know what their companies are looking for in candidates. They might have an idea of what “culture fit” means . But specific job requirements may be less clear, especially if employees are asked to refer people who work in different departments and job functions.
Dispel the mystery. Include links to job descriptions when sending emails asking for referrals . It can also be a good idea to highlight what you’re not looking for. The U.S. energy company DCP Midstream went out of its way to prevent unqualified referrals with a campaign to remind employees that not every friend or acquaintance makes a good colleague:
2. Keep employees updated
Employees who refer candidates expect to receive updates on the recruitment process . Not hearing back from recruiters can make employees reluctant to refer again, a mistake which undermines your employee referral program.
Communicate when possible . Let employees know what’s happening at every stage of the process. When a referred candidate isn’t selected for an interview, send referrers a thank you email anyway. Encourage them to keep looking for great people. That way employees won’t feel underappreciated.
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3. Acknowledge good referrers
Along with offering monetary referral rewards, try to publicly recognize effective referrers. For example, if one employee has referred 10 people, six of whom were hired in the past three months, you’ve got a star referrer on your hands. Make sure they know you appreciate their effort. Any acknowledgement, ranging from an award to public praise from the CEO, can be meaningful. Make these acknowledgements a codified part of your referral program policy .
Dell uses the Dell Talent Community , its social sourcing tool, to award points to “Top Referrers.” The more frequently employees share jobs in their network and refer candidates, the more points they get, and their names are displayed in Dell’s internal system. Dell also recognizes successful referrers in team meetings , both locally and globally.
Related : 17 effective candidate sourcing tools
4. Offer a mix of monetary and non-monetary incentives
Google made a mistake in employee referral strategy when it doubled its $2,000 referral bonus . Money is a popular incentive but selling an experience (e.g. trips, vouchers, or motorbikes ) can better market your employee referral program . And some of these incentives, like time off and gift vouchers, are less expensive than cash awards. Salesforce.com recently surprised employees who participated in their referral program with baseball tickets. Salesforce also offers impromptu awards to drive referrals.
If you announce that you are using money as an incentive, opt for a tiered system: it’s the most effective tool to motivate employees to participate in your referral program. Give higher rewards for harder-to-fill positions. Offer a flat amount for each referral and then offer more if referred candidates get interviewed, get hired or stay at your company for at least six months.
5. Enhance user experience in your job application process
A user-friendly application process is essential to getting candidates to apply for a job, and the same applies to referrals. Your referral process shouldn’t be lengthy, complicated or require lots of clicks. Otherwise, you risk driving referrers away.
Consider using a referral software or platform. This kind of software allows hiring managers and recruiters to send requests for referrals for particular positions. Referral software is also a good option if you want to help employees share open positions with their social network. Applicant tracking systems (ATSs) can typically integrate with dedicated referral software services, or offer their own referral tools .
Related : Innovative recruiting tools and techniques for modern HR teams
6. Experiment with referral tactics
Survey employees to find out what prompted them to refer (or, not refer) and what suggestions they have to improve your referral program. A successful referral program continues to adapt by making use of a variety of initiatives. Try these techniques to improve your employee referral program:
- Plan spontaneous promotions : A Booking.com recruiter got more referrals for a Portuguese-speaking customer rep position by buying the whole office Portuguese food .
- Use aided recall techniques : Google’s recruiters don’t pose a general request for referrals. They ask more specific questions like, “Who’s the best developer you know?” That way, their employees find it easier to think of someone.
- Try gamification technology : Companies like Fiverr, a freelancing platform, use the gamification options of their referral software. Consider tools like Briq , a Slack integration that lets your teammates praise each other and award virtual credit (“briqs.”) This tool includes an employee referral scheme – your team can refer candidates and receive briqs that they can exhange with actual rewards.
- Offer special bonus schemes : Intel recently announced that it will double its referral bonus when the company hires women and minorities through referrals.
- Think from the candidate’s point of view : Accenture makes it easy for candidates to initiate referrals by adding a “Get Referred” button in their job postings.
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- Referral Marketing
Swipe These Employee Referral Program Templates to Win New Customers and Hire Top Talent
- 18 min read
- Last updated June 26, 2024
- By Irene Lopez
ON THIS PAGE
- An employee referral program template helps you set goals for your program, plan out how it should run, and strategize how you'll reward employees and promote your program.
- Decide whether you need a template for new hiring referrals, or new customer referrals from employees; each requires a different framework.
- When the program is live, check back on the template you’ve prepared so you know if it’s working the way you wanted. You can always go back to the drawing board and review your action steps to identify problems if you didn’t get the results you were expecting.
Employee referral programs are the perfect way to grow your business by leveraging your greatest assets. But setting up your first employee referral program can be overwhelming if you don’t know how to start and what you should be including. Fortunately, using an employee referral program template can help!
In this article, we’ll answer these questions:
What is an employee referral program?
What is an employee referral program template, what does an employee referral program template help you accomplish, which employee referral program template is right for your needs.
- What to include in an employee referral program template when employees refer employees?
- What to include in an employee referral program template when employees refer customers?
- How to choose the right software for your employee referral program template?
We will also share downloadable employee referral program sample templates, which you can use as is or customize for your individual needs.
Want to download an employee referral program template right away and start building?
- Download this template if you want employees to refer job candidates.
- Download this template if you want employees to refer new customers.
An employee referral program is a formal program where you incentivize employees to help you grow your business, either by bringing in new business or by sourcing high-quality talent. Employees will refer new customers or new employees. In exchange, they get rewarded with employee referral rewards for successful sales or hires.
There are two types of employee referral programs:
Employee-to-employee referral program : Your current employees are encouraged to refer potential candidates for open positions at your company.
Employee-to-customer referral program : Your employees are encouraged to refer potential customers to your business.
In both cases, the programs involve 3 critical aspects:
- You motivate your employees to tap into their network, whether that’s for new customers or potential employees.
- Employees receive incentives in exchange for successful referrals.
- The value of the rewards depends on the value that’s brought in. So, employees know that they can expect bigger rewards for bringing in higher value to the business.
It’s easy to get overwhelmed with all the moving parts of creating an employee referral program. An employee referral program template simplifies and streamlines the process, and helps you stay on top of all the activities involved in creating a program.
- An employee referral program template is a framework where you plan out all aspects of your employee referral program prior to your launch.
- You’ll use it to outline your goals, the rewards you want to give out, how you want the program to operate, and more.
- A template provides the basis for your program and a place to define your goals, so you can better gauge success when the program is live and know if it’s working how you expected.
An employee referral program template is a framework that you can use to:
Plan out all aspects of your employee referral program before you launch
The template should cover aspects such as goals, systems, processes, people, and metrics.
Goals help you decide the steps you need to take to achieve specific results. Before you go about building a program, you want to have clear goals on hand to focus on.
Systems is about the software or programs you’ll need to create and run your program. If you’re a small business, you may be tempted to go down the manual route, but things can get complicated and complex in the absence of automation.
Processes are the different tasks involved in creating an employee referral program. You can have one process for recruiting employee referrers, another process for training, one process for tracking commissions, and another for initiating payments.
With the people component, you’re thinking about who needs to be in the loop and accountable for specific parts of the program. If you’re doing an employee-to-employee program, you’ll want to include your talent acquisition or HR teams. If you’re using a program to find new customers, you’ll likely need to talk to your sales and marketing teams. Either way, you may need to include your accounts team for the payments made to employees.
Last but not least, metrics is about how you will measure your goals and manage your performance.
In a sense, the planning process is about creating a bird’s eye view of everything you need to launch a successful employee referral program.
Create an action plan
Once you’ve established a baseline with your planning, you can go further with your framework by delving into the specific details of each aspect. At this stage, you’re developing the concrete steps to make your program a reality. Ask yourself these questions to help kickstart the process:
- What specific goals do you want to achieve with the program? Do you want “x” number of new customers, or “x” value in new sales? Or, do you want to fill “y” number of positions by a fixed timeframe?
- What types of employee referral bonuses or rewards do you want to give out, and how will these be paid to the referring employees?
- What parts of the program should run automatically in the background?
- Is there any process that needs to be routed to approvers before they can pass on to the next stages?
- What engagement strategies can you use to ensure your program is consistently on peoples’ minds?
When the program is live, check back on the template you’ve prepared so you know if it’s working the way you wanted. You can always go back to the drawing board and review your action steps to identify problems if you didn’t get the results you were expecting.
Employee-to-employee or employee-to-customer: what type of employee referral program template will work best for your business? Or, are you ready to use both? Here’s how to figure out which template you’ll need.
An employee-to-employee referral program template will work for you if:
You’re actively looking for employees to fill job openings. If you’re frequently sharing your job postings through online channels (the career pages of your website, social media like Facebook, professional networking sites like LinkedIn, etc.), and offline channels (job boards and posters), an employee-to-employee program is a great tool.
Your company is fairly large. While a program like this can work just as well for a small-sized company, you may not need to have a program of this magnitude when you’re just starting out. It’s more ideal for the growth stage when you have the resources to handle the larger influx of responses and applicants you’ll be receiving.
Your employees are engaged, satisfied, and familiar with your brand and company culture. Your employees will only encourage other potential candidates to sign up if they’re genuinely vested in your business. If you take the time to develop rapport with your employees and make sure they’re happy working for your brand, you’re more than likely to succeed with an employee-to-employee referral program.
Employees know what you’re looking for in an ideal employee. To some extent, your employees will have some familiarity with how your company works on the inside and what candidates can expect in terms of company culture.
At the same time, you still need to spell out your expectations so your referring employees know what specific traits, experience, and capabilities they should be looking out for.
An employee-to-customer referral program template will work for you if:
You want your employees to be brand advocates and share your products and services. Your employees know your brand like no one else. And potential customers are more likely to trust employee sentiments over any form of direct brand advertising.
Your employees are engaged, satisfied, and familiar with your brand, products, and services. Similar to employee-to-employee referral programs, it’s absolutely essential that your employees are vested in your brand.
Spend time developing internal programs and policies that engage your employees and ensure they’re having the best possible experience as an employee. Another core business benefit (besides referrals) is that your retention rates are more consistent.
Employees know what you’re looking for in an ideal customer. While they know how your brand works from the inside, they may not necessarily have the knowledge or skills to identify the right-fit customers for your business. Provide training and resources so employees know what they’re looking for.
You are ready to handle a big influx of new customers. Once you start any form of referral marketing program, things can go viral very quickly. You want to ensure that every single customer has the best possible experience. Make sure you have enough staffing, resources, and tech support.
You provide stellar customer service. All your best-laid plans can go to waste if your customer service is sub-par. Having adequate resources can help mitigate much of the risks, but you still want to ensure your staff have the training and support they need to do a great job when they’re serving customers.
Next, we’ll be covering all the specific details of what you should cover in each type of program template. We’ll also share employee referral program sample templates that you can build on to craft your own templates.
Employee referral program template: What to include when employees refer employees
Planning on mobilizing employees to bring in job candidates? Use our guide to create your program framework. Your employee referral program policy template should include elements such as an overview, goals, tracking and software, rewards, eligibility, marketing, and training and development.
You can download a free copy of our employee-to-employee referral program template here.
Now, let’s look at the details of the specific sections you should include, one by one.
1. Overview
The overview is your snapshot of what’s to come in the employee referral program template.
Cover the “why” for your program and when you want it to start (the launch date). You’ll also want to list and briefly describe all the individual elements you want to have ready before the launch.
2. Goals for your program
The first critical element of your employee referral program template is defining your goals. Goals can differ from business to business. But, in general, you may want to fill “x” number of roles in “y” department by a given date, or you may have several specific roles to hire for. If you have a larger organization, you may want to expand the scope to how many positions you want to fill by a specific date.
Within the context of the big-picture goals, you can get as specific and as detailed as you want. So you can list the types of qualifications candidates need to become eligible for applying. You can list the recruitment process stage-by-stage. You can even list the people who need to be part of the hiring process for different departments, for example, the hiring managers of the department and the human resources (HR) teams.
3. Tracking and software
The next element involves software and how you will leverage it to track the referrals your employees make. Granted, you can use spreadsheets, but this can get complicated very quickly when you start to scale. Ideally, you want a “set up and run automatically” type of solution – automation software. This type of software can execute all the tasks seamlessly, and a lot faster, in the background for you.
The best automation software you can use for this purpose is employee referral software. The software generates unique trackable referral links for each employee to share, and enables referral tracking in real time.
Look for the following features in a robust employee referral software program:
- The software should be able to completely automate referral tracking, the sending of rewards, and even program promotion.
- The software should make it easy for you to customize the program to your needs. You should also be able easily integrate it with your existing processes. Otherwise, you may find that you need to go back and forth between multiple systems.
- It’s worth considering a software that’s flexible enough to run both programs (where employees refer employees and where employees refer customers). You may want to have this option if you plan to grow and scale further down the line, so there’s minimal disruption.
Rewards are the most critical aspect of your employee-to-employee referral program. Your rewards scheme can make or break the process for your employees. An effective rewards scheme will also be highly motivating for your employees, so they’ll consistently be scouting for quality candidates for you.
Some questions you want to consider:
When do employees become eligible for rewards?
Will you pay the incentive right after a referred job candidate is accepted? Or after a set period of time following the hire?
Paying out an incentive as soon as a candidate gets hired may not always be your best option. What if you decide that a referred candidate is not the best fit? Or what if a candidate gets hired, but then resigns within a week?
Instead, you might decide to pay the referral bonus 60 or 90 days after the candidate’s start date, if the candidate is still deemed a successful hire. This method also serves to motivate your referring employees to ensure they’re bringing on qualified candidates that will potentially stay for the long haul.
Another way to offer rewards is to use a tiered reward structure. This means offering a small reward when a candidate completes a job application, another reward if the candidate gets through to the interview stage, and then finally, a much bigger reward if the candidate gets selected.
Or, you might decide to reward your referring employee when a new employee is hired, and then hand out additional bonuses further down the line once you’ve determined that there’s a long-term future with the new hire.
What rewards will you give out?
Whatever the type of reward you use, it’s important to make sure they’re rewards that your employees will find motivating and be happy to receive. Cash is a universal favorite and can often be the first preference for most of your employees.
But there are lots more options than just cash. You can also give rewards like gift cards, event tickets, or travel benefits, or offer training/skill development opportunities. You can even award more tangible gifts like gadgets, bags, or watches.
If you’re unsure what to pick, simply ask your employees what types of rewards they would find the most motivating and enjoyable to receive.
Will you gamify your program, with extra rewards for the top referrers of the year?
One idea worth looking into is gamification. That’s when you apply the same design used in games to motivate your own employees. Consider creating leader-boards, and providing higher-value rewards for the top referrers of the year.
5. Terms and eligibility
In this template section, you’ll make it clear who’s eligible to participate in the employee referral program and gain rewards, and who’s not.
- Typically, all employees can submit referrals, with the exception of HR teams and senior executives.
- As a standard, hiring managers also can’t submit referrals for the positions who would report to them, but can submit referrals for other positions.
- Think about whether you want to include part-time employees and contractors in the referral program.
Once you’ve determined employee eligibility, it’s time to look at candidate eligibility.
Ask yourself whether you want to open up all the roles indiscriminately to the referral program – will any successful employee referral earn rewards?
Alternatively, you can only give out rewards for hard-to-fill roles. Also, think about the category of potential employees that’s relevant to the program. Should candidates be referred to full-time positions, non-temporary positions, or non-contract employee positions for the existing employee to qualify for rewards?
You can also go into more detail to tighten the eligibility criteria and make the rules more clear.
For example, must candidates be new applicants who haven’t applied in a year? What happens when a candidate is referred by multiple employees – do you want to reward the first referrer?
You can also provide information on how employees can identify the ideal candidates in terms of qualities, skills, and experience for the position.
6. How the referral process works
This element delves deeply into the finer details of how the referral process actually works from a practical perspective.
Discuss how employees can submit referrals. Is there a specific portal or referral form they should use?
List the specific information you want employees to provide when they’re referring candidates. For example, this could include the candidate name, position name, job ID number and contact information, referrer name/staff ID, referrer email address, and contact information.
Also, list the many ways employees can promote their referral links . Will they be given a shareable link that they can share directly to their social media channels? Will they send a direct email? An excellent solution that’s made possible through the use of referral software is creating unique trackable links for each referring employee, which they can share anywhere.
Last but not least, do you want to provide a message template that employees can personalize? Or, do you want to leave the messaging to the employees themselves? If you would rather have employees share the way they see fit, provide guidelines on specific do’s and don’ts.
7. Program promotion
Once you’ve established the foundational elements of your program, you next want to think about how you’ll promote it to your employees. Here are a few different channels you could consider:
- Slack or other internal messaging forums
- Inside employee portals
- At company meetings
- During one-on-one conversations
8. How to brief employees about the program
The importance of training cannot be over-emphasized. Training helps employees understand how they can go about achieving the objectives. It also serves as a support system so employees have concrete guidelines and instructions to fall back on. Discuss the following as part of your training and briefing programs:
- How to identify the ideal candidate: What specific traits, skills, and experience should they have?
- What types of candidates should NOT be referred?
- People from different departments may not be as clear on the essentials needed for a given job.
- Clear up ambiguities and explain complex or technical terms.
- People have a propensity to work with people who are most like them. Training can help them become more logical and focused on choosing the right candidate for the job.
- It’s basic tech but training can be highly appreciated.
- Training will also reduce the amount of questions about how the program works at the back-end, which you would otherwise end up having to field later.
9. How you’ll communicate with employees
The final element has to do with communication and engagement. With referral program software, you’ll be able to carry out many of these key tasks without missing a beat:
- Keep employees updated on the status of their referrals via the referral platform.
- Send out updates periodically, so employees know all the latest promotions and any changes they need to be aware of with respect to the program.
- Solicit feedback on how employees are finding the program and what you can do to make things better or more effective. Software also makes it easy for employees to reach out to you via an online form, for example, with any questions they may have about the program.
- You can also provide feedback to individual employees about the strengths and weaknesses of their referrals, so they know what they can do better for their next referrals.
Employee referral program template: What to include when employees refer customers
Planning on mobilizing employees as advocates who promote your products? This is the employee referral program template for you. You’ll need an overview, your specific goals, tracking and software notes, the rewards structure, eligibility criteria, how the referral process will work, promotion plans, training ideas, and a communication framework on your program template.
You can download a free copy of our employee-to-customer referral program template here.
Now, let’s look at the details of the specific sections you should include, one by one.
The overview is a brief synopsis that talks about your big “why” for the program and the individual elements and accountabilities that are required to build your program from scratch. We’ll be discussing these elements next. Also, add a launch date, and ensure you’re listing every single element you need in place prior to your launch date.
The first and most important element is program goal-setting. Goals help define your action steps and help you achieve focus in your planning.
Make sure that your goals are SMART: Specific, Measurable, Attainable, Relevant, and Time-bound. Following SMART guidelines will help you create realistic goals that can be achieved within the set time period and measured against your success parameters.
Use revenue as the basis for determining whether your ROI is really measuring up. For instance, you can set goals such as:
- Conversion rate (percentage of referred leads who become customers).
- Percentages of employees making referrals.
- Revenue generated via referrals within specific time intervals.
- Average purchase value of referred customers vs. all customers.
- Lifetime value of referred customers vs. all customers.
Next, think about how you will track referrals and your ROI of the program. For small businesses, you may be tempted to go manual through the use of spreadsheets. But manual methods can become cumbersome. You’ll also be spending a lot of time with manual error-checking and tracking for payments.
Using an automated method is much easier and faster, especially when you’re considering growing your business further down the line. Employee referral software can help you create unique trackable referral links for each employee to share, and enables referral tracking in real time.
How do you go about determining the best employee referral software for your business? Follow these guidelines:
The best employee referral software:
- Automates referral tracking, the sending of rewards, and even program promotion, so you’re not constantly scrambling back and forth between multiple systems.
- Lets you customize the program to your needs, and integrates with your existing processes.
- Is flexible enough to run both types of employee referral programs (where employees refer employees and where employees refer customers).
The subject of rewards requires some thought and strategic planning. You want to provide rewards that your employees will genuinely want to work toward. If your rewards are not motivating enough, employees will simply not want to make the effort. Consider these questions for your program template:
Ideally, you want to reward the referring employee when the customer makes the first purchase. But this may not always be feasible for B2B businesses, which involve a fairly long sales cycle. In this case, you can always reward employees with a smaller reward for a qualified lead, and then a larger reward for an actual purchase.
Will you reward the new customer as well, once they make their first purchase?
Rewarding the new customer in addition to the employee is a practice worth implementing. That’s because a reward structure like this functions like a twin motivator for your employee on the one hand, and your referred lead on the other. Your employee will want to keep referring, and your potential customer will feel like purchasing from you is the right choice.
What rewards will you give out to referring employees?
Your rewards should be attractive, appealing, and engaging enough for your employees to want to take action.
Most employees typically prefer cash as it gives them the freedom to use the reward the way they want. They can save it, gift it, spend it, or invest it, according to their preference. Other attractive incentives include gift cards, gym memberships, event tickets, travel rewards, gadgets, corporate swag, and further training or skill development opportunities.
What rewards will you give new customers?
While it’s tempting to give customers a one-off appreciation gift, what you really want to do is connect the gifts to a long-term relationship.Choose gifts that motivate new customers to keep coming back to your brand. Some examples include credits towards a future purchase with your brand, discounts, or product-related freebies.
Gamification can help generate a huge amount of traction within a short period of time. As part of gamification, think about a tiered reward structure (where higher amounts of referrals earn larger rewards), as well as additional bonuses or big-ticket prizes for the top referrers of the year.
The next element is about nailing down the eligibility and other terms and conditions. Do you want to throw the floor open to all employees so that they’re immediately eligible to refer new customers and earn rewards?
Alternatively, you could allow employees to participate only after they’ve been fully trained on all aspects of the referral process. So, in practice, your referral bonus program would become a fully-fledged, and formal, employee ambassador program.
Also, describe how the referral process will work. Ask yourself these questions:
- Will they have their own portal or do they need to submit referrals through a referral form?
- Ideally, limit the number of fields. Employees can lose interest when the form is long, complex, and unnecessarily time-consuming.
- Can they share links on email or social media?
- Will they have their own unique referral link?
- Will you offer suggestions for what they should include?
Your employees won’t know about the program unless you tell them. Use available offline and online channels to launch a teaser to build anticipation. And then, once you’ve roused sufficient curiosity, launch the official program because that’s when your employees are going to be the most excited.
Promote your program:
- Via Slack or other internal messaging forums
The next element is about imparting knowledge and skills. Place yourself in the shoes of your employees and think about what type of training they would need to become effective referral ambassadors.
To start with, provide a detailed brief about the ideal customer for your business, including their demographic, lifestyle preferences, pain points, and the social media channels they frequent the most.
Also, talk about what makes your brand unique and why it’s the ideal solution for potential customers. Discuss your product features in depth, its advantages, and why it’s better than other similar products in the market.
Provide a referral message template which covers the essentials but allows room for the employee to express their personality. At the same time, provide guidelines on brand voice and tone, plus what’s acceptable and what’s not in brand communication. Most importantly, determine how you will help employees know how to get their message across authentically, without sounding salesy.
Last but not least, provide training on the referral program. Talk about the why, how it works, how employees can check the status of referrals, how they can earn, and how they can expect the benefits to be dispersed into their accounts.
The very last element of your referral program template involves timely communication with your employees. Referral program software is a great option to do just that, as it’s a lot more efficient, faster, and significantly less error-prone compared to using manual methods like spreadsheets and emails.
Think about how you will update employees of the status of their referrals. Referral software often integrates with your existing systems, so employees can check up on how their referrals are doing on their own employee portals or dashboards.
Use promotional marketing tools embedded within your referral software, or a combination of email and online meetings, to share updates and changes to your programs. You can also use the same methods to announce and implement upcoming training programs.
Provide ways for employees to connect with you in case they have any questions or are facing challenges with any aspect of the program. Ensure you respond in a timely fashion so employees know you genuinely care about how they’re getting on.
Choose the right software for your employee referral program template
The most important part of creating a successful employee referral program template is selecting the right employee referral software for your needs.
Referral Rock referral software works well for all types of businesses and referral programs, and lets you set up employee referral tracking in days, not weeks!
- Our software is flexible enough to run programs where employees refer new customers or refer new employment candidates
- The software can help you fully automate your referral tracking, reward distribution, and even your program promotion
- Plus, a dedicated onboarding specialist is included with every plan. So, you’ll have someone to walk with you every step of the way dedicated to your success!
Having ready-made scripts in the form of employee referral program templates can be a complete game-changer for your business. They help you structure your referral program, identify your deliverables, fix accountabilities, and develop concrete action plans to achieve your goals. Use our guide to help create your employee referral program template or simply use the sample templates we’ve provided and customize them for your unique needs.
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15 Creative Employee Referral Program Ideas (Plus Tips & Best Practices)
Good help is hard to find…unless you’ve got a killer employee referral program . 45% of hires made via an employee referral stay over four years at a company, saving approximately $7,500 in productivity and sourcing costs .
The takeaway? By building an irresistible referral program, you can turn your employees into your biggest ambassadors while saving money and improving the quality of hires. As we’ll see, there are dozens of ways to build a killer program.
The key is to listen to your employees and understand what they really want. Aside from listening , here’s how to build an employee referral program that will keep your teams engaged and flood the referral funnel with qualified candidates.
TL;DR — Key Takeaways
Employee referral programs are a creative component of your recruiting strategy that gets your employees to do the recruiting for you by referring good-fit candidates they know.
A good employee referral program is structured, fun, and relevant to employee needs and wants. We’ve included 15 detailed examples to show you what we mean.
There are several benefits of employee referral programs , namely saving the recruitment team time, reducing hiring costs, and fostering a more close-knit company culture.
Keep these key best practices in mind: be timely, fair, and transparent in your communication. Iterate the program, and try your best to integrate with wider HR systems.
What’s an employee referral program?
An employee referral program is a strategic way to get new employees by leveraging your existing employees’ networks. Basically, you’re roping current employees into your hiring process by rewarding them for referring quality candidates they know.
Employee referral rewards can include anything from a nice cash bonus to extra vacation days or even something quirky like a snowboarding lesson.
3 types of referral programs
Employers considering implementing an employee referral program have to decide whether they want to incentivize their staff based on the quantity or quality of the referred candidates. Or a bit of both!
Here’s a quick overview of the three different types of tiered employee referral programs and their pros and cons.
Volume-Based Referral Program | Employees are rewarded based on the number of people they refer to the company, regardless of whether those referrals get hired. | Encourages a high quantity of referrals, potentially increasing the pool of candidates. | If employees are incentivized to refer as many people as possible, regardless of fit, this may lead to a large number of unqualified candidates. |
Quality-Based Referral Program | Employees are rewarded when their referrals are hired and stay with the company for a set period. | Encourages employees to refer high-quality candidates who are likely to be a good fit for the company. | May lead to fewer total referrals, as employees are incentivized to refer people they believe will get hired and stay. |
Hybrid Referral Program | Employees receive a smaller reward for each referral and a larger reward (or the rest of the initial one) after the referral stays at the company for a set period. | If employees are incentivized to refer as many people as possible, regardless of fit, this may lead to a large number of unqualified candidates. | Because of the complexity, it could require more resources to administer. |
What are the benefits of employee referral programs?
Employee referral programs feed into the HR team’s talent acquisition efforts. It’s an initiative designed to bring in qualified candidates without the same time and financial costs you’d expect through advertising job openings. There’s even more in it for you, though. You can expect:
A faster time to hire since you’re not doing any recruitment marketing (referrals can be up to 5x more likely to land a role than other applicants).
Reduced hiring costs , saving as much as $7,500 per hire , according to a survey by Jobvite.
Acquiring rare top talent that could otherwise have been snapped up by another company. 82% of employers named referrals as the best channel for recruitment ROI.
Improved retention rates since successful referrals stay up to 1.5x longer than other hires.
Better company culture , as referred employees are 18% more likely to report higher job satisfaction.
How to create an effective employee referral program in five steps
Ok, so your team wants to get employees to refer qualified candidates to good candidates they know. But what’s the best approach to make this all happen smoothly?
Before diving into some great employee referral program ideas, consider these tips to help your team create a successful referral program.
Step 1: Create clear goals
Before you do anything, determine why you’re considering an employee referral program in the first place. Like anything in life, without a clear intention, you can’t set the right goals.
Once you’ve outlined your intentions, make sure you set measurable goals . This might sound like, “Increase the total number of applicants by 3% in May.” You’ll also want to give some thought to the resources you’ll need to pull this off.
This sounds super simple, we know. But don’t move on to step two until you have a clear idea of these goals. We’ve seen many companies fail to implement employee referral programs properly because they couldn’t measure their efforts.
Step 2: Build incentives, processes, and frameworks
Here comes the fun part: designing the referral program. Above all, keep it simple. Anything super complicated will never take off. Think about this like a three-layer cake:
Incentives: Make your employee referral bonus attractive to your current employees. They’re the backbone of this whole initiative.
What incentives will you offer your employees?
How often will you revise this?
Processes: Get into the nitty-gritty. Outline detailed, step-by-step plans to follow to achieve your recruitment goals .
How will employees refer potential candidates to you?
How will you keep track of all this information?
Frameworks: Structure your strategy in the optimal way to help you hit your goals.
How will you make sure your processes remain fair, transparent, and efficient?
How often will you re-evaluate the tactics you’re using to reach success?
Make sure all of this is documented in an accessible place and is a core part of every employee’s onboarding process.
Step 3: Promote your program to your employees
With a new employee referral program in hand, promote it through internal communication channels like Slack or email and include it in onboarding materials for new hires. Keep the communication simple and always focus on what’s in it for them .
Step 4: Improve your rewards based on feedback
You want to ensure that your program is as appealing as possible. A simple quarterly employee survey could be a good place to start. Send it internally and let people vote for the perks they most value.
You could also have an evergreen suggestion box where people can drop their ideas as and when they think of them. You never know what fun ideas may come up!
Step 5: Automate and expand the reach of your program
A very simple way to do this is by sharing about it on social media . Encourage employees to reshare the company’s employee referral program with their networks or post about it organically themselves.
You can also leverage technology or AI to help automate this process. One idea is to have a Slackbot ping internally every time HR posts a job opening . An automatic reminder keeps your employee referral program top-of-mind and encourages employees to refer candidates without extra effort from HR.
What makes a successful employee referral program?
78% of job seekers rely on employee referrals to find new job opportunities, so it’s important to make your employee referral program as appealing and easy to use as possible.
A good employee referral program rewards employees with things they actually want .
39% of companies offer between $1,000 and $5,000 as a referral bonus to employees
Some use a structured or tiered approach to recognize and reward top participants.
Gamifying the employee referral program through referral software is another great way to get more people involved and engaged.
15 examples of successful employee referral programs
If you’re now thinking about creating your own employee referral program but don’t know how to get started, we’ve gathered a few ideas to help you get those creative juices flowin’.
1. Seamless experience
Make it as easy as possible for employees to refer, track, and receive their rewards. A user-friendly process with clear communication goes a long way—and yes, it really can be that simple.
Why it works
The easier something is to use, the more likely people are to use it.
In the real world
Google has long been considered the gold standard in employee referral programs. Their process is simple, user-friendly, and accompanied by generous bonuses for successful referrers.
2. Make it part of the culture
Embodying your employee referral program into your culture can help foster a great workplace and a close-knit team. It helps keep employees invested and engaged in their own team’s growth.
Keeping strong social ties to your workplace helps reduce turnover and increase retention. It also helps find high-quality talent that’s already a great culture fit , reducing onboarding time and potential friction in the team.
Salesforce offers personalized onboarding experiences for referred candidates, matching them with the employee who referred them, ensuring a smooth integration into the company.
3. Fund a cause the employee supports
Another way to reward employees is to support a charity or cause of their choice, such as the World Wide Fund for Nature, Doctors Without Borders, or the Red Cross.
One way is for employees to choose to donate a portion of their reward to a charity, and the company matches that donation.
For example, Toggl Plan pledged to plant a tree for each applicant that passed the initial skills test, turning a regular hiring campaign into an environmentally friendly one.
4. Show appreciation at all stages
You don’t have to reserve bonuses just for successful referees. What about offering something to say thank you at different stages of the hiring process?
The more that’s in it for them, the more employees will feel incentivized to participate in the referral program.
Hubspot not only offers rewards for successful hires but also for candidates who make it to the final interview stages, even if they don’t land the job.
5. Use technology to do more
Try out referral software to automate and support your strategy.
If you keep reminding employees about referrals and make the process super easy for them to participate in, it’ll be a win-win all around. For instance, use referral links to easily get the information you need from them.
Innovative companies, like Nord Security, are leveraging technology to create targeted LinkedIn ads and extend their reach to all brand supporters.
6. Experiential rewards
While cash incentives are the most common rewards, many employees prefer unique experiences instead.
You can give your top-referring employees experiential gifts they’ll never forget, such as wine tasting, cooking lessons, concert tickets, skydiving, or a kayaking trip.
One US software company, Guidewire, that rewarded employees with an unforgettable experience month saw a 260% increase in their total referrals and a 41% increase in the number of new hires by referral. Nice!
7. Let former employees in
Your current employees aren’t the only ones who will recommend great candidates for a position. Consider opening your program up to alumni, too.
Lean on those who have been with your company for a long time and know its values inside and out to tap into greater network effects.
Amazon encourages former employees to refer potential candidates even after leaving the company through their “boomerang” initiative.
8. Celebrate in style
Go out of your way to show your appreciation for your successful referrers. You could even extend this to include everyone who has referred a candidate, regardless of whether they were successful.
It helps add a personal touch to the employee experience and encourages employees to participate.
The Cheesecake Factory’s employee referral program, Slice of Success, offers complimentary meals and organizes recognition events for its referrers.
9. Embrace diversity
Use your employee referral program to bring in more diverse candidates.
Encourage your team to refer people from underrepresented groups, which will foster an inclusive workplace and enrich your talent pool .
CVS Health offers additional bonuses if a referral leads to the hiring of someone from an underrepresented group.
10. Reward collaboration
Recruitment is a team sport, so let your referral program reflect that!
This unique approach promotes teamwork and camaraderie while also encouraging employees to support each other in bringing in the best talent.
Atlassian fosters team collaboration by rewarding entire teams for their successful hires instead of individual incentives only.
11. Create a tiered employee referral program
Why not offer rewards across different points in the hiring process?
Why does it work?
Depending on whether you incentivize based on the number of qualified referrals or new employees hired through internal referrals, you could reward each tier with better incentives.
Microsoft offers rewards at every milestone of the hiring process, regardless of whether the candidate is ultimately hired or not.
12. Align with company values
Consider offering rewards that are directly connected to the wider mission or values of the company.
By offering an incentive tied to company values, you can strengthen the collective identity and draw employees into your world.
Airbnb offers travel credits to successful referrals, fostering a shared love of travel, exploration, and adventure within the company culture.
13. Get a good tagline
A good tagline for employee referral programs, like ‘refer and earn,’ can motivate your employees to start making referrals.
You can inspire employees to take action by using finance-driven taglines like ‘Earn up to $1000 for referring an employee’, or by appealing to their emotional side with something like ‘Friends make the best co-workers’.
Here’s a great example of a tagline that supports diversity in the tech space:
14. Harness speed
The faster and easier something is to do, the more likely we are to do it. Make your employee referral program the fastest thing your employees will do at work.
A quick and seamless method will remove barriers to participation. This encourages more frequent recommendations, filling the talent pool and easing the pressure on sourcing applicants.
Interstates lets employees refer candidates by text. The process takes just 15 seconds!
15. Improve relentlessly
Your employee’s desires and needs are always evolving. Your referral program should reflect this.
Show your employees you’re in tune with what matters to them. This will make them feel heard, understood, prioritized and appreciated.
UnitedHealth Group regularly evaluates and evolves its program based on employee feedback, keeping it relevant, effective, and engaging.
Best practices for employee referral programs
You’ll want to monitor and optimize your employee referral program over time. Here are a few ways we manage our program for success.
1. Provide timely feedback to referrers
Keep your referrers in the loop! Successful employee referral programs keep employees informed of how their referrals are doing. Providing feedback to the referring employee can boost employee participation and can lead to more referrals. It helps show appreciation for their efforts and keeps employees engaged in the program.
2. Ensure fairness and transparency
Maintaining fairness and transparency in the referral process is key. The evaluation criteria should be clear and accessible to all to prevent biased selection. Transparency around decision-making also builds trust in the program, prevents disputes, and fosters a positive company culture.
3. Integrate with existing HR systems
Integrating your program with existing HR systems and tools will make your life easier. This will make it much easier to track employee referrals, manage candidate information, and measure performance. Using ATS integrations provides a smooth hiring experience for referred candidates, from submission to hire.
4. Celebrate successful hires publicly
Recognize and celebrate new hires from the employee referral program. Make a big deal of giving the referral bonuses, too. This kind of public recognition can boost morale and encourage participation in the referral program. You might decide to feature the successful referring candidate in a company newsletter, highlight them in a team meeting, or on your organization’s social media channels.
5. Continuously improve the program
As we’ve mentioned, be sure to continuously evaluate and improve the referral program. Regular feedback from employees and hiring managers will identify areas for improvement. Conduct surveys to gather employee insights and make data-driven adjustments.
Don’t forget to properly assess employee referrals
Referrals have the odds stacked in their favor, but it’s still important to assess them independently. They’re probably a great culture fit, so what you’ll want to focus on is making sure the hard skills are also there.
How? Give them a skills assessment or homework assignment . Toggl Hire can help with that—it’s actually our bread and butter. We’ve got thousands of expertly crafted questions for all kinds of positions that can help you cut through the noise and hire the best talent faster.
Try it for free for yourself.
Julia is a freelance writer and fierce remote work advocate. While traveling full-time, she writes about the intersection of technology and productivity, the future of work, and more. Outside work, you can find her hiking, dancing, or reading in a coffee shop.
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How to Create an Employee Referral Program
What's the best way to recruit—and retain—employees? Your company career site? Networking? Word of mouth? According to many studies, it's actually employee referrals, which attract employees who tend to stick around for extended periods compared with those who are found through different methods. Since referrals are shown to produce better workers, it's important to encourage your current employees and extended network to be involved in the recruitment process.
An employee referral program is a recruiting strategy in which employers incentivize current employees or former employees (alumni) through rewards to refer qualified candidates for jobs in their organizations. Employee referrals are a great way to drive qualified candidates from a very active and engaged pool of professionals who are your employees. They know the organization and its culture and can speak to the business brand like no one else.
If you're building your employer brand and starting from the ground up expecting your employees to send a flurry of referrals for your open positions, the best place to start is by creating a brand ambassador program, especially one that is accessible and focused online.
What Brand Ambassador Programs Look Like
At its core, your employees’ experience is their story. No amount of policy, NDAs or "spin" can change what that means. If your program is to be successful, you need to incentivize your workforce and put your workers in the driver's seat. It needs to be organic, not programmed or forced. Automation and control take this out of the realm of word of mouth and into the realm of advertising, resulting in a loss of effectiveness.
With your employees as the centerpiece, your program can tell the story from the right perspective and will address the issues your candidates are most likely to be concerned with. Simply stated, this needs to be an organic effort by your employees to tell real, positive stories about what it means to be a part of your brand and why others should consider signing on. Let employees share the benefits of working for you that have meant the most to them, via social media, YouTube and any other source they prefer. This is what employment branding really is.
It's not enough to simply create a program for employee referrals. Sure, you could send an all-company e-mail with instructions on how to refer candidates to open positions at your company and leave it there, but it's likely to fall flat (or get lost in e-mail). Your employees are busy with life and work. Tell employees that you're interested in working with them to find others who can help build a great place to work and a rewarding culture. Let them know that you will send e-mails about open positions regularly and would appreciate their recommendations for suitable candidates who fit in with the culture and have the capacity to make important contributions.
How to Promote Your Program
HR and recruiting leaders must be master marketers focused on internal employees as well as company communication. What CEO or HR doesn't want a qualified pipeline of candidates whose cost-per-hire is substantially less? And don't forget that employee referral programs also historically have lower turnover rates because those candidates are prepped and given expectations by your best employees. Here's how to get started:
- Roll it out. As soon as you create an employee referral program, HR should do more than just send an e-mail. Internal marketing should be a focused, detailed and long-term process. HR teams should think big picture by looking at small opportunities to drive conversation, such as bringing in a lunch or snack, gathering your teams and talking about the benefits of employee referrals. Position it as a perk ("you're great, you likely know other great possible employees") and don't just leave it there. Combining these more tactical strategies with a larger plan, you are sure to generate positive results.
- Celebrate the small wins. Send an all-company e-mail when someone's referral is hired—and include what the referring employee will get (X dollars after X days of employment for their referral). Examples like these will incentivize other team members to stop and take a look at their networks to see who they can send your way.
Remember: High-performing employees refer high-performing candidates.
Ideally, you want to hire referrals from your best employees—and your top performers. Logically, it makes sense that candidates in your employee's network share some of the same traits that you're looking for. Your highest-performing teams likely are also the busiest ones. It's key to make employee referrals easy and quick, as well as to include the referring employee in the status of their referral.
- Post a reward. Your employees wants to know that your company cares that they took the time to refer a candidate. It's a small thing to set up a reward system, whether cash or gift card or a paid day off (once their referral has worked at your company for a specific period of time). Have all-hands meetings. Take the time to thank your team members for their referrals. Recognition is its own reward, but cash is still the most effective employee referral strategy.
- Give a bonus. Offer a 90-day or 120-day retention bonus on top of your first-day-start referral bonus. It helps ensure that the employee who's doing the referring is committed to sending the best talent for the long term to your company. This is the secret sauce for a robust referral program.
- With a small budget, consider swag. Why not create a killer design for an employee t-shirt with your brand and Instagram hashtag? Or a tagline like "ask me about my amazing job @yourinstagramhandle?" Depending on the number of employees who are willing to wear the shirts around town, at the gym, at grocery stores and elsewhere, putting it on a tee is a fun way to get a conversation about your company started. As a bonus, this contributes to company branding!
This article is adapted from Digitizing Talent: Creative Strategies for the Digital Recruiting Age , by Jessica Miller-Merrell (SHRM Books, 2023).
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Checklist For Creating Successful Customer Referral Program Graphics PDF
This slide covers a checklist for building a compelling user referral program. It includes steps such as beginning with templates, setting objectives, investigating how referrals are coming, making a list of potential customer referral sources, etc. There are so many reasons you need a Checklist For Creating Successful Customer Referral Program Graphics PDF. The first reason is you can not spend time making everything from scratch, Thus, Slidegeeks has made presentation templates for you too. You can easily download these templates from our website easily.
Referral Program Strategies For Improving Customer Relationships Microsoft PDF
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Referral Program For Real Estate Agents Infographics PDF
The following slide outlines an overview of real estate agent referral program through which company can receive quality leads and increase residential and commercial property sales. Information covered in this slide is related to property referrals, bonus, and additional bonus along with impact. Whether you have daily or monthly meetings, a brilliant presentation is necessary. Referral Program For Real Estate Agents Infographics PDF can be your best option for delivering a presentation. Represent everything in detail using Referral Program For Real Estate Agents Infographics PDF and make yourself stand out in meetings. The template is versatile and follows a structure that will cater to your requirements. All the templates prepared by Slidegeeks are easy to download and edit. Our research experts have taken care of the corporate themes as well. So, give it a try and see the results.
Online Customer Interaction Referral Program Performance Tracking Dashboard Sample PDF
This slide covers the KPI dashboard for analyzing referral campaign results. It includes metrics such as total revenue generated, monthly recurring revenue, new customers, clicks, cancelled customers, paying customers, etc. Deliver an awe inspiring pitch with this creative Online Customer Interaction Referral Program Performance Tracking Dashboard Sample PDF bundle. Topics like Revenue Generated, Recurring Revenue, Paying Customers can be discussed with this completely editable template. It is available for immediate download depending on the needs and requirements of the user.
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Icon For Boosting Brand Image By Referral Programs Icons PDF
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Referral Programs Types Rewards And Benefits Designing Approaches Summary Pdf
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Several Referral Programs Through Word Of Mouth Marketing Diagrams PDF
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Strategies For Running Effective Customer Referral Programs Structure PDF
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Employee Referral Program PowerPoint and Google Slides Template
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To fill the vacant positions in an organization, employees are asked to recommend someone suitable. This employee referral program is an internal method to hire the best talents, and it has several advantages for both organizations and employees. Being the HR manager, you can explain its concept and aspects to employees from any department or senior officials like the manager, CEO, or COO. To help you with this task, we have prepared this Employee Referral Program PPT template from scratch and with relevant information. Once you download this pre-designed deck of slides, you can easily use its content and features lifetime. So, get it right now!
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Content Enriched Deck
This deck of slides features important details, such as the best tips for creating an employee referral program, what its benefits are, important steps for building a referral program for your team, etc. Apart from it, our designers have also kept sample graphics that you can edit and use. If you are preparing a presentation on this subject, then you can pick and use any slide or element from this PowerPoint template. It is available for download in blue and multicolor layouts to match your style.
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We understand you might need to give a final touch to the template to make it suit your requirements; therefore, we made it completely editable. You can scale and resize the graphics without worrying about the resolution, as they are HD and vector-based. If you need to deliver the presentation on large screens, you can change the font type, size, format, or even the color of the text. Our designers have made the slides so precisely that the visual quality will remain undisturbed even after the modifications. In short, there is everything in this deck to let you prepare a compelling presentation.
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Employee Referral Program PowerPoint Template
Product Description:
Employee referral program presentation template.
Use this Employee Referral Program PowerPoint template to create visually appealing presentations in any professional setting. Its minimalistic design and ready-to-use features enhance your presentation slides ten folds.
The Employee Referral Program PPT template is professionally designed with the principles of vision sciences to capture your audience’s attention. Convey your message clearly with our unique set of editable infographics, icons, images, fonts, and presentation backgrounds. Download now and stand out in your next presentation with Employee Referral Program PowerPoint and Google Slides template.
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Features of this PowerPoint Template And Google Slides Theme:
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- Employee-Referral-Program-PowerPoint-Template - 4x3 – $4.99
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Build a Stronger Employee Referral Program. Summary. Because the value of hiring referrals is really in the information the referrer brings to bear, job applicants and hiring teams need to ask key ...
In designing a successful employee referral program, HR professionals may want to take the following steps: Determine the strategic goals and anticipated outcomes of the employee referral program ...
Employee Referral 101: A complete Guide [With Tips and ...
IDEA TEMPLATE 7: REAL IMPACT- BETTER HIRING, QUICKER. Research has shown that well-designed employee referral programs reduce the time for hiring by almost 50% from 56 days to 30 days. The process itself becomes more productive with hiring cost reducing, on average, by 12%.
Company HR can use this template for employee referral program presentations during meetings. Users can edit each element according to custom requirements, i.e., modify the sequence of titles and edit default descriptions. The editable slides also allow customization in shapes, size, text, and color combination.
Below are several ways to keep this process simple: Place a resume drop box in the HR department's office. Use an online employee referral platform like ERIN, Boon, RolePoint, Teamable, etc. Adopt a simple employee referral template. Make an instructional video or presentation that details the employee referral program.
The employee referral program template for PowerPoint is an animated animated theme with chat box designs to enter your points. Step diagrams are the most effective slides in business presentations since they have a clear vision and straightforward layout. In the white background, it seems colorless even if the center mockup mobile slide with ...
Include these graphics in your slides to highlight the stepwise process of designing a team's employee referral program. You can shed light on the benefits and uses of this referral program. You can further highlight the importance of these programs in reducing recruitment costs and promoting a positive work culture and trust among staff.
Increase candidates accepting position by 10%. 4. Incentivize your employees. Referral programs work at their best when there is an incentive to take part. If you want your employees to trade their valuable time to participate in your company's referral program then you should offer them some sort of incentive.
Step 3: Incentivize, incentivize, incentivize. Hiring bonuses are nice, but they're not the only way to tantalize people into referring qualified candidates. Our Boston neighbors Raizlabs offer a choice of three kinds of travel adventures, including dogsledding in Maine, to successful referrers. Referral rewards don't need to be lavish, either.
Give higher rewards for harder-to-fill positions. Offer a flat amount for each referral and then offer more if referred candidates get interviewed, get hired or stay at your company for at least six months. 5. Enhance user experience in your job application process.
What is an employee referral program? An employee referral program is a formal program where you incentivize employees to help you grow your business, either by bringing in new business or by sourcing high-quality talent. Employees will refer new customers or new employees. In exchange, they get rewarded with employee referral rewards for successful sales or hires.
Step 2: Build incentives, processes, and frameworks. Here comes the fun part: designing the referral program. Above all, keep it simple. Anything super complicated will never take off. Think about this like a three-layer cake: Incentives: Make your employee referral bonus attractive to your current employees.
Here's how to get started: Roll it out. As soon as you create an employee referral program, HR should do more than just send an e-mail. Internal marketing should be a focused, detailed and long ...
This is a employee referral programs ppt powerpoint presentation pictures graphics cpb. This is a four stage process. The stages in this process are employee referral programs, business, management, marketing. Slide 1 of 6 Process Flow For Conducting Referral Programs Designing Approaches Pictures Pdf.
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Slide 1 of 18. Employee Referral Program Powerpoint Ppt Template Bundles. Slide 1 of 75. Employee Retention Strategies To Reduce Staffing Cost Powerpoint Presentation Slides. Slide 1 of 6. Referral Process For Employee Counselling Services. Slide 1 of 6. Comparative Assessment For Employee Referral Program Software.
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PPT Employee Referral Program