An employee referral programme is a system in which a company rewards its own people for bringing in a candidate. It is among the most effective recruitment channels, because referred candidates arrive with a realistic idea of the job, get up to speed faster, and stay longer. How it is set up determines whether the programme stays alive. The reward should be sufficiently motivating and paid out in two parts – after starting and after the probation period ends, so that referrals are not made without thought. The rules must be simple and public, including what happens if two people refer the same candidate. The programme, however, only works when people in the company are satisfied; if no one refers anyone, the problem is not the size of the reward.
See also: Employer Branding, Referral programme, Employee turnover and exit costs.
