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Employee Referral Bonuses

  • 1.  Employee Referral Bonuses

    Posted 07-16-2021 12:16

    Hi,

    Does anyone utilize employee referral bonuses as an incentive to recruit for healthcare positions?  If so, can you share your policy and your thoughts on the effectiveness of utilizing referral bonuses?

     

    Thanks in advance for your feedback!

    Lorraine

     



  • 2.  RE: Employee Referral Bonuses

    Posted 09-22-2021 20:44
    I have a lot of clients in this arena, and I have seen bonuses anywhere from $500 up to $10,000 for these types of roles, I think in part because there are so many open, but also the companies are trying to show the value they place on referrals and their desire to reward them. I have seen some rewards split between the new hire and the referrer, so the employee gets rewarded and the new hire referred by the employee gets a bonus.

    The key to any referral program is to talk about it, OFTEN. make it a priority and when rewards are due, MAKE IT KNOWN. Our CEO will now give out some of the rewards in the monthly company meeting sometimes, but there is always a recognition each month to say thank you.

    Another key is to make it simple for employees to share with others and make sure your program tracks automatically (Our ATS does all of this) because you want to make sure employees get credit. Also, recognize that half of employee referrals are not always direct contacts. 50% of our employee referrals are just connections, but not necessarily known by the employee. Since they were willing to share the roles, it led to new hires and we reward accordingly.

    We also found that waiting 90 days to reward folks is not always the best practice. We have rewarded up front, or within 30 days, or even split it up over the 90 days so that they get rewarded every 30 days for the next 90 days.

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    Steven Smith SHRM-CP
    Applicantpro
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