How to Create an Employee Referral Program

Employee referral programs benefit employers and employees. The existing employees feel a sense of accomplishment by contributing to the company and helping others out that they know are looking for employment. The company benefits because the new employee is more than likely familiar with the company through the referral.

1. Review the needs of your company and group your company into the category of either large or small. If your company is small and you need a certain amount of employees on board, consider the casual approach to a referral program. On the other hand, if you have a larger company, you may be better off developing a formal program.


2. Write down the rules that you wish to implement in the program. There should be a set amount of money as a reward for finding a successful employee. If you wish to have a different type of reward, write down the amount of time the new employee must be on board before the existing employee reaps the benefits and other relevant information.


3. Launch the program and provide all employees with the official rules and job postings that you need to fill. Put together a meeting so that all employees are aware of the way the program works, and are able to ask questions at the same time. This is also a good time to take in any suggestions from the existing employees to include in the program, whether it is a certain procedure, or an added bonus after the new employee has worked at the company for an extended amount of time.