10 Employee Referral Program Best Practices

Company Confidential © 2017 Perks.com All Rights Reserved.
10

Your Employee Engagement Strategy
Culture
• Pulse Surveys
• Recognition
• Community Circles
Talent
• Applicant Tracking
• Employee Referral
• Onboarding Tools
Performance
• Performance Mgmt.
• Online Learning
• Certifications
Wellbeing
• Fitness Monitoring
• Diet Wellness
• Fitness Challenges
• Mental Health

Employee Referrals – A key component in today’s millennial workforce
Employee
Referral
Employee
Engagement
Additional
Components

1 Know What You Want to Achieve
Develop realistic goals and objectives, in line
with your Employee Engagement strategy.

Retention
Onboarding
& training
Lost
productivity
Five Elements of Hiring ROI
Referrals are #1 at 46% retention after one year!
Days to hire
Direct hiring
costs

Monitor Performance and Adjust - Participants

Then Monitor Performance and Adjust - Stakeholders

Embrace Social
You cannot scale your employee referral program without embracing
social media.
2

A Fundamental Communication Shift
Over 50% of the
world’s population is
under 30 and 96%
of them have joined
a social network
The fastest growing
segment on
Facebook is 55-65
year-old females
While you watch this,
100+ hours of video
will be uploaded to
YouTube
Over 50% of the
world’s population
is under 30 and
96% of them have
joined a social
network
The fastest
growing segment
on Facebook is
55-65 year-old
females
While you watch
this, 100+ hours of
video will be
uploaded to
YouTube

Prioritize, Tag and Promote
Not all job openings are created equal.
3

Promoting and Prioritizing Jobs

Support Your Employment Brand
Successful organizations achieve alignment at every level of the
organization.

Recruiting and Your Employer Brand
Create brand alignment Plan for conflict
Recruiting practices must be
consistent with your branding.
Negative experiences at
interviews affect future
purchasing decisions and may
be socially shared.
Protect your company’s brand reputation. Referral conflict situations
will happen. Decide and document how they will be addressed.
Multiple employees
referring the same
person
Family
relations
Referred candidate
already in database
What happens if the
referrer leaves the
company midway
through the process

Who can contribute?
Yes, employees are your main participants, but
consider who else might contribute to your employee
referral program.
5

Create a Referral Ecosystem
Create a referral ecosystem to help attract
the quantity and quality of talent required to
be successful in your market space.
Eliminate friction within the system so that
job openings are visible when and where
they can be most accessible to qualified
candidates.
Fuel the ecosystem with a strong WIIFM*
value proposition that resonates for all the
partners within the ecosystem.
*WIIFM = What’s In It For Me

Company Confidential © 2017 Perks.com All Rights Reserved.Company Confidential © 2017 Perks.com All Rights Reserved.
Educate, Educate and Educate
Successful Employee Referral Programs require training
6

Participant Training
Participant
Training
Video Tutorial

Manager Training
Manager
Training
Video Tutorial

Make it Fun, Make it Simple
Game mechanics help grow employee engagement and that
continues to be true in the referral process.
7

Encourage Alignment with Game Mechanics
Boost engagement with badges and leaderboards
Use challenges to focus and excitement
Departments/locations compete for the greatest
number of hires
Add interview bonuses
Add quarterly draws
Embrace “kickers” for hard to fill positions

Define Your Communications Plan
Everyone Needs a Game Plan8

Employee Referral Communications
Strategic in nature to all employees about engagement Tactical as to how Referrals are communicated
Education
Communications Messaging
Content Success
Stories
Creative
Alumni
Employees
Prior referrers
Referring
employee
Referred
candidate
Prior referrers
Referrers
Non-
participants
News postings Feedback Surveys

Not All Referral Programs Are Equal
4 tires and a steering wheel do not make these the same9

Legacy Referral Programs
Why don’t workers participate in current Employee Referral Programs?
Underfunding
the program or
severely
discounting the
reward
Not enough
visibility
Offline or paper
processing
No recognition
as part of the
referral process
No overall
engagement
strategy
Not analyzing
statistics every
12-18 months
Probation
periods greater
than 120 days

Recognize and Reward
Intrinsic and Extrinsic motivation increase
employee engagement levels. Intrinsic Extrinsic10
Extrinsic engagement is
a vital aspect of some of
the most successful
ERPs companies have
created thus far.
Can be in the form of
compensation through
points/dollars, perks, vacation
days or even promotions.
Intrinsic engagement is an
absolute must when
creating an optimized
employee referral program.
Research indicates that intrinsic
rewards are an excellent way to
motivate employees to complete a
task through autonomy, mastery
and purpose.

What Rewards Work Best
Employee Referral rewards differ from other Employee Engagement
programs. Your rewards should feed the intrinsic/extrinsic nature of your
employees. Here are some ideas:
Offer a charity donation option, and try to instill in your employees that
they should refer people because the team wins “when it has the best
players.”
Create more interest with prize drawings, bonus supplements, and small
rewards to first-time referrals.
Draw people in with nominal rewards for referring qualified prospects, even if they aren’t hired.
Occasionally, consider the idea of a stunning bonus to get everyone’s attention . This could be just for hard-to-fill
positions or positions that are extremely expensive to fill.
Consider a points payout that allows the user choice. Points that can be redeemed in a catalog with merchandise,
gift cards or debit cards.

31
Let’s Recap the 10 Keys to Success

32
1. Know What
You Want to
Achieve
2. Embrace
Social
3. Prioritize, Tag
and Promote
Job Postings
4. Support Your
Employment
Brand
5. Who can
contribute?
6. Educate,
Educate and
Educate
7. Make it Fun,
Make it Simple
8. Define Your
Communications
Plan
9. Not All
Referral
Programs Are
Equal
10. Recognize
and Reward
1
6
Aligned
Employee
Engagement &
Referral
Programs

33
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www.perks.com/contact-us
(501)-707-0360
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For More Information
sreddy@perks.com

10 Employee Referral Program Best Practices

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