A well-thought-out employee referral program can be a great resource for recruiting future employees. Here, the employees can refer their family members or friends for any open position. Usually, the employees, whose referrals are hired, receive a type of incentive such as a bonus, dinner with their supervisor, or even a paid day off.

If done right, this referral program can bring many benefits. Referred employees usually stay with the organization longer. They are also faster and cheaper to hire than traditional employees. Below are some tips in creating an effective employee referral program:

1. Always update your employees. Employees who are referring candidates for the open position expect regular updates. Reluctance often takes over if the said employees do not hear back from the recruiters. This makes them think twice in referring someone again. This is a mistake that often makes any employee referral program weak. See to it that you communicate with your employees. Even if the referred candidates are not selected for an interview, thank the employees concerned through email anyway. Encourage them to continue looking for exceptional people. This way, they won’t be discouraged or feel unappreciated.

2. State clear job requirements. Make sure you provide links to specific job descriptions when you send out emails for employee referrals. See to it that you include traits that you are not looking for.  Remind your present employees that not all relatives, acquaintances, or friends make good co-workers.

3. Recognize the good referrers. Rewards for successful referrals involve awarding bonuses and public recognition. A star referrer is an employee who has many hired employee referrals. Always let them know that you appreciate their efforts. A direct praise from the President is very meaningful. You can do this during an assembly in the school, in newspaper or magazine articles, or in your university’s official website. You can just offer a higher reward if the successful referral is interviewed, hired, and stays with your company for more than half a year.

4. Give both non-monetary and monetary incentives. You can save money by giving non-monetary incentives. Baseball tickets, vouchers, bicycle, and off days can add more meaning than cash rewards.

5. Test different referral techniques. See if any of these techniques can help improve your employee referral program:

• Ask for your employee’s opinion about the open job positions.

• Assist employees to think of a fitting candidates.

• Offer more bonus schemes.

• Promote spontaneously.

It is always more practical to seek ideal job candidates within your company. Work with your present employees to bring about the right person for the job and reward them for successful hires. This way, your employment referral program can become the pipeline that nourishes your growing company.