Best Practice Staff Referral Schemes

Sometime the old ways are the best.

Don’t forget as a TA or HR Director its really good practice to have a staff referral scheme and don’t forget to promote it.

It’s still a great way to attract and hire new talent.

Below I’ve been looking globally and searched the world wide web (so you don’t have to) on exploring best practices in employee referral programs, which has revealed several successful strategies across various organisations.

Here are some notable examples:​

1. PURE Insurance: This American property insurance company achieves a high referral rate, with between 40% and 60% of its employees sourced through referrals. Their approach involves promptly asking new hires if they know anyone suitable for the company, emphasising the importance of referrals early in the employment process. ​aihr.com

• Salesforce: The cloud computing giant organizes "Recruitment Happy Hours," informal gatherings where employees can invite potential candidates. This relaxed setting allows recruiters to meet prospects in a casual environment, fostering genuine connections. Salesforce has paid a total of $5.5 million in referral bounties, reflecting the program's success. ​aihr.com+1Join Genius+1

• InMobi: Facing a need for engineering managers, InMobi offered culturally specific incentives, such as Royal Enfield bikes in India and Vespas in the US, for successful referrals. They also provided options like trips to Bali, leading to an increase in referral rates from 20% to 50% for their 900-person company. ​aihr.com

• Intel: To enhance diversity, Intel implemented a program offering double referral bonuses for successful hires of women and minorities. This initiative not only attracted top talent but also promoted a more inclusive workplace. ​goboon.co+1Join Genius+1

• Pinterest: Aiming to diversify its workforce, Pinterest set specific hiring goals and encouraged employees to refer candidates from underrepresented backgrounds. This strategy led to a 24% increase in female referrals and a significant rise in referrals from underrepresented ethnic backgrounds. ​goboon.co

• Phillips: Operating in health technology and lighting, Phillips utilized technology to enhance its employee referral program. By engaging with employees and external candidates across 22 countries, they tailored their global employment brand to local audiences, resulting in a 30% increase in employee referrals and a 20% rise in career site visits. ​goboon.co

• Sentient Digital: This company emphasizes the philosophy that "good people know good people." By valuing employee satisfaction and leveraging their networks, Sentient Digital successfully hired four candidates through referrals, demonstrating the effectiveness of their program. ​sdi.ai

When it comes to creating a brilliant employee referral program, there are a few elements to keep in mind.

Ideally, every program includes:

Incentives – Cash or non-cash such as extra holidays, dinner for two, cinema tickets or even just a simple thank you.

Ease of use – Try to make the use of your employee referral program as easy as possible for your people.

Feedback – As always, keep your employees posted on the status of their referrals. Did their candidate move forward in the hiring process? Drop them a quick email or message.

Recognition – Praise is good for employee morale. Think of a nice way to give your employees the recognition they deserve when they’ve successfully referred someone.

The above case studies highlight the importance of creativity, cultural alignment, diversity focus, and leveraging technology in designing effective employee referral programs. Tailoring incentives and strategies to align with company values and goals can significantly enhance the success of such programs.

By learning from these global examples, organisations can refine their referral programs to better align with their workforce and hiring needs. Whether it’s offering creative incentives, fostering an inclusive approach, or making the process seamless, a well-executed referral scheme can be a game-changer for talent acquisition.

The key is to continuously promote the program, celebrate successes, and encourage employees to see referrals as a valuable way to shape their workplace with great talent.

Thinking of creating your own scheme?

Download our FREE Employee Referral Program Policy and Guidelines Template