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By Jeff Wach, SPHR, SHRM-SCP

Building an Effective Referral Program

Does your company have a referral program for new hires?

Referrals are by far the preferred source of new hires. Your employees know the culture. They know who will be a good fit. However, having a referral program isn’t enough. It has to be effective. How do you do that?

Follow the VIP Referral Program.


First, the program needs to be VALUED. A $20 gift card will not get the results you are looking for. Think of the money you would normally spend to recruit a quality employee. A referral program needs to be worth the effort. Don’t be afraid of increasing the amount for more difficult, hard-to-find positions.


Second, your program needs to be INCREMENTAL. You want to reward longevity! So perhaps give $100 when they start and $400 after 6 months of employment.


Third, to get the most bang for your buck, it should be given in PUBLIC. At one of your company-wide meetings, call the person up and pay out the bonus (preferably in cash) right there in front of everyone! Make it clear to everyone that the program actually pays!

There you have it. The VIP Referral ProgramValuedIncremental, and Public.

How does your program measure up? Contact us today to set up a proper referral program.