The right talent is the powerhouse of a company’s growth. That’s why companies are always on the lookout for the best candidates.
An employee referral policy is among the best ways to attract and hire such talent. It uses the power of an existing workforce to identify and recruit high-quality candidates.
In simple terms, an employee referral policy refers to an internal company program in which current employees recommend qualified candidates for job openings. The employees are incentivised with rewards for successful hires.
It’s important to have a clear policy without room for doubt. That is what this template will provide.
How This Template Will Help
The employee referral policy template given below will help you to:
- Spell out clear and simple guidelines for making referrals
- Communicate the benefits and incentives and motivate employees to participate
- Set referral criteria, which helps employees understand what to look for in candidates.
- Ensure a standardised approach to referrals and promote transparency
- Foster involvement and ownership among employees in the recruitment process
The Policy Template
Our Employee Referral Policy
Here is a template that you can tailor to your specific needs.
Objective
As <Name of the Company> grows, we need talented individuals to power our growth journey.
Our current employees possess high standards and skills. To further promote the company’s mission and vision, we have created an Employee Referral Policy.
This policy is designed to create an active pipeline of candidates for open positions. It is meant to incentivise current employees to bring in great talent from their associates and contacts.
The policy aims to:
- Reward employees
- Boost Diversity
- Reduce time to fill open positions
- Obtain candidates with specialized skills
- Create a robust talent pipeline
Scope and Eligibility
The Employee Referral Program is an opportunity for employees to refer a professsional suited for a particular role for employment. It is a document to guide all <Name of the Company> referral schemes.
All current employees are eligible for this employee referral policy. It should be noted that the following groups of employees will not qualify for the referral bonus:
- All employees at grade <Insert Grade Level> and above
- Contractual/Interns/Staffing Agencies/Trainees
- HR team members
The policy also applies to candidates who have been made a final offer to join the company. They are also entitled to the perks of the Employee Referral Policy.
The employee referral policy is applicable for full-time positions. If the candidate referred has worked with <Name of the Company> earlier, a referral bonus will not be awarded if the joining is within six months of their exit.
Definitions
The following definitions are applicable throughout this policy.
Employee Referral: This is when an employee of this organisation suggests a candidate for a job opportunity by submitting the candidate’s profile on the employee referral portal.
Referral Bonus/Reward: A cash reward or another incentive given to the employee when their referred candidate joins and completes 3 months.
Successful Referral: When the referred candidate successfully joins <Name of the Company> and completes 3 months.
Referral Procedure
The employee referral policy is maintained by the company’s referral portal, which is part of the HRIS system. Employees are encouraged to periodically review the referral portal to check new roles and open positions.
Step 1: Log in to the portal and look for the “employee referral” tab to find new positions for hire, with a detailed description of the role and its requirements.
Step 2: Upload resumes of referred candidates after ensuring that the role description matches the referred candidate.
Step 3: Provide the candidate’s details, such as name, contact details, and email, along with the resume.
Step 4: Finally, click “refer” to submit the referral.
Referral Rewards and Bonuses
The system of referral rewards is outlined below. It is subject to change along with circumstances.
For Full-time Roles
The referral bonus amount mentioned in the following table will be awarded to the employee whose referred candidates successfully join <Name of the Company> and complete three months with the organization.
The referral bonus amount depends on the business function and the grade of the position referred for.
| Grade | Technology Development | HCM & Others | Corporate |
| G0 & GIG | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G1 – G3 | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G4 | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G5 | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G6 | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G7 | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G8 – G9 | <Insert Amount> | <Insert Amount> | <Insert Amount> |
| G10 & Above | <Insert Amount> | <Insert Amount> | <Insert Amount> |
International Open Positions Referral Bonus
| Grade | Amount |
| G1 – G4 | <Insert Amount> |
| G5 – G7 | <Insert Amount> |
| G8 and above | <Insert Amount> |
Special Bonuses and Rewards
Mega-referral Rewards
Mega-referral rewards apply to employees from Grade 2 and above who have three or more successful referrals throughout the year. The referrals can be from any grade, business group, or role.
| Number of Successful Referrals | Mega-referral Reward |
| 10 – 15 | <Insert Reward> |
| 16 – 20 | <Insert Reward> |
| >20 | <Insert Reward> |
Diversity Multiplier Bonus
To promote diversity, we offer double the referral rewards for the following referees:
- LGBTQ candidates
- Specially-abled candidates
- Women managerial candidates
Important Guidelines
Profile Validity: Profiles will be valid for 3 months from the submission date. After this, they will be deemed to have expired.
Referral Bonus Payout Period: Payment will be made when the referred employee has completed 3 months of employment with the company.
Tax Liabilities: Referral bonuses are subject to applicable taxes as per current tax laws.
Other Important Points
- Referrals must be uploaded to the HR portal for referral payouts.
- Referrers must submit accurate information during the referral process.
- Employees referring a candidate should not be involved in the candidate’s interview process.
