Employee referral policy strengthens the company’s workforce through trusted employee recommendations 🤝. Designed as a flexible blueprint, adapt this to fit your organization's unique hiring needs and enhance the team's potential! 💪🚀.
Employee referral means an existing member of the team/organization vouches for a potential candidate for an open role. The referrer, usually an integral part of the organization inherently understands the culture and dynamics, making their recommendation highly valuable.
Much like a trusted book or movie recommendation, a nod from a current team member often leads to discovering individuals who fit seamlessly into the organization's ethos. Beyond its cost-effectiveness, this approach brings a personal touch to the recruitment process.
To acknowledge the effort and trust, a token of appreciation, often in the form of a bonus, is extended when the referred candidate becomes part of the community. This is where the Employee Referral Policy program kicks into action.
The Employee Referral Policy functions as the rulebook, ensuring all stakeholders are on the same page. It provides clarity, maintains transparency, and ensures fairness in the entire process. While the organization places immense trust in its team's judgment, it also believes in the importance of having a clear framework to uphold the integrity of the referral system.
The Employee Referral Program Policy serves as a guide to foster these connections. It aims to streamline the referral process, showcasing the importance of recommendations from our employees. We value and trust our employees' insights, believing they have an intrinsic understanding of what's best for the organization.
By establishing this policy, we ensure a consistent and active influx of potential candidates for open positions. More than just a recruitment strategy, this policy also functions as a gesture of appreciation, rewarding our employees for introducing qualified and compatible candidates from their networks.
The employee referral program policy applies to every employee of the organization up to the Assistant Manager level. However, this excludes the Senior level management team, the Recruitment team and others who are involved in the recruitment process.
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The employee referral policy underlines the following aspects -
The Employee Referral Program’s process and bonus system operates in the following way -
👉The employee can submit the referral through the employee referral portal which provides details on the candidate’s name, job role (for which the candidate is referred to), contact details and the resume.
👉The HR will review the resume contact the eligible candidate and schedule the interview. If selected, the referred employee will be notified.
👉To be eligible for a referral bonus, an employee must introduce a candidate who is not only hired but also completes the initial phase of their new role successfully.
👉The referring employee should be still a part of the company when their recommended candidate completes their first 90 days. If they left before this milestone, they would not qualify for the bonus.
👉The bonus amount is not awarded immediately. Once the new hire passes the 90-day mark, the bonus amount for the referring employee will be processed in the next pay cycle, ensuring they see the reward in their paycheck without undue delay.
👉The bonus amount is taxable just like other components of the salary. The requisite amount will be deducted as tax withholding, ensuring compliance with financial regulations.
👉The bonus is applicable only if the referred candidate is recruited within nine months of their introduction to the company.
👉The bonus isn't a flat rate for all positions. Depending on the nature of the job – whether it's an hourly role or a salaried position – the bonus amount differs. The exact amounts would need to be filled in, but it's worth noting that these too will be subjected to the standard tax withholdings.
Important points to note🎯:
Violations of this policy will be addressed by HR. Employees are expected to uphold ethical standards during referrals. Any breaches may result in disciplinary actions and forfeiture of referral bonuses. If bonuses have been disbursed, the Company will reclaim them, either via payroll or other means.
This is a general guide, not a legal document, and may not cover all laws under the Indian Labour law. Neither the writer nor Pazcare will be liable for any legal consequences arising from its use. Consult with a legal professional to ensure compliance and adapt this guide to your business needs.
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