The Best Employee Referral Bonus Strategy to be considered for a successful Employee Referral Program

Bonuses are the biggest motivator for employees to

refer candidates, but what should be the quantum of

bonus as well as the criteria and modalities of

payment still remain a subject wide open for

discussion among the recruiting fraternity.

Here are some of the best practices in employee referral programs which seek to reward employees in small ways for the very act of referring irrespective of

the outcome for successful hiring.

Pre-plan your employee referral spend

Plan a hiring budget against each job description which allows organizations to implement a tiered employee referral bonus program which rewards every employee who has made a relevant referral. This acts as a great motivator to draw more referrals. Employee whose referral is finally hired is rewarded with the highest bonus, while employees whose referral make it to the final list but are not hired get a lower portion and so on.

Try Non – Monetary Rewards

Cash incentives are not the only ways to motivate employees in an employee referral program. Small gifts like gift cards or t-shirts or other merchandise offered on a regular basis help to keep employees engaged with the hiring process. Another way is to offer employees who have referred candidates an opportunity to participate and win in a larger prize draw like a laptop or a TV or a holiday etc.

Pay more and hire fast! Attach a supplemental referral bonus amount for positions or roles that are hard to fill as they require specialized and niche skill sets. If you are looking to hire fast for a position, a good option is to introduce limited period bonus add on for referring candidates upto a specified date post which the supplemental bonus is removed. Make sure these bonuses and rewards reach the employee on time since responsiveness is the key to a successful employee referral program.

Appreciate everyone ! It is important for the recruiters to understand that the success of any referral program lies in the participation of its employees. Motivating your employees hence plays an important role for running a referral program. Companies should go beyond referral bonuses to recognize employees who have contributed significantly to the success of employee referral program by felicitating them at office functions or with handwritten notes from senior leaders.

With these simple steps you are sure to see improved results in your referral

program. And if you need a tool that will help you seamlessly achieve all of this,

ZALP is just a click away

You may also opt for a free consultation on improving your referral program results. Our employee referral specialists would be glad to help.

For more information, visit

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