Hi,
I would like to have professional's thought on an interesting topic "Employee Referral Scheme & Incentive".
As we know that it is in practice to reward employees' monetarily under referral scheme, but my point is that is it really necessary? Aren't we pushing our employees to think monetary benefits and pushing his referral getting placement by doing this? What are the other ways to reward an employee under referral scheme?
Should we have PUSH approach for employee referral where we force employees to refer candidates to earn money?
or
Should we have PULL approach where employee refers candidate because he finds the culture, policies, processes, service & work profile best in the industry?
I am sure if we opt for PULL approach, we in HR will have major role to play creating the working environment, culture and nurture the talent. In other words HR will always strive to work upon improving E-Sat and getting referrals who will again work with the company for longer time.
I would like to have your thoughts on this pls.
With Regards,
Anup
From India, Hyderabad
2I would like to have professional's thought on an interesting topic "Employee Referral Scheme & Incentive".
As we know that it is in practice to reward employees' monetarily under referral scheme, but my point is that is it really necessary? Aren't we pushing our employees to think monetary benefits and pushing his referral getting placement by doing this? What are the other ways to reward an employee under referral scheme?
Should we have PUSH approach for employee referral where we force employees to refer candidates to earn money?
or
Should we have PULL approach where employee refers candidate because he finds the culture, policies, processes, service & work profile best in the industry?
I am sure if we opt for PULL approach, we in HR will have major role to play creating the working environment, culture and nurture the talent. In other words HR will always strive to work upon improving E-Sat and getting referrals who will again work with the company for longer time.
I would like to have your thoughts on this pls.
With Regards,
Anup
From India, Hyderabad
Employee Referral is always Motivating... The same should be continued,,, You can create slabs for different positions,,,,
From India, Coimbatore
From India, Coimbatore
Hi Anup,
We give some rewards points on selection stage and another rewards points if the new candidate referred completes the probations (six months) successfully.
Our rewards points are linked to money value which is decided every month. Sales force also gets rewards points for target achievement.
For Pay out of incentive rewards we do it in deferred manner.
60 % of incentive earned in next month and 40 % is defferred as a lock in. say 40 % shall be put in an account with a condition if employee remains employed with the company for a future date say Fininical Year Ending like March 20** they get it else they dont get it.
This serves as dual purpose of attracting and retaining employees.
Rdgs,
Rnky
From India, Lucknow
We give some rewards points on selection stage and another rewards points if the new candidate referred completes the probations (six months) successfully.
Our rewards points are linked to money value which is decided every month. Sales force also gets rewards points for target achievement.
For Pay out of incentive rewards we do it in deferred manner.
60 % of incentive earned in next month and 40 % is defferred as a lock in. say 40 % shall be put in an account with a condition if employee remains employed with the company for a future date say Fininical Year Ending like March 20** they get it else they dont get it.
This serves as dual purpose of attracting and retaining employees.
Rdgs,
Rnky
From India, Lucknow
I am not into HR but here are some of my comments :-
If the organization is really good (ideal to work??) employees irrespective of monitory benefit will try for their friends.
Adding referral bonus adds more value to it, because it genuinely works out in getting appropriate candidates(Candidates selected through the referral system stand high on quality and perform better as they are in an organisation which includes their friends and known colleagues).
We think referral bonus as a token of appreciation and even employee understands it. I think there is no harm in giving referral bonus because it is good to pay your own employee rather than paying 3rd parties or investing in advertisements.
Even if employee thinks in monitory terms it is ok because end of the day organization is getting likeminded candidates without much trouble.
I think referral bonus is an acceptable way because in these days no organization is ideal, even they think in terms of monitory benefits at each step so what’s wrong if employee thinks that way.
Every company keeps track of employees and their referrals. If the quality of the candidates referred are not up to the mark such employees referral weightage/image-index reduces over the time. This way companies are able to control employees who are referring candidates just for the sake of seeking money.
Companies also track the performance/loyalty of referrals so that in future they can take appropriate decisions about whose referral to be given more priority.
Regards,
Ritesh
From India, Pune
If the organization is really good (ideal to work??) employees irrespective of monitory benefit will try for their friends.
Adding referral bonus adds more value to it, because it genuinely works out in getting appropriate candidates(Candidates selected through the referral system stand high on quality and perform better as they are in an organisation which includes their friends and known colleagues).
We think referral bonus as a token of appreciation and even employee understands it. I think there is no harm in giving referral bonus because it is good to pay your own employee rather than paying 3rd parties or investing in advertisements.
Even if employee thinks in monitory terms it is ok because end of the day organization is getting likeminded candidates without much trouble.
I think referral bonus is an acceptable way because in these days no organization is ideal, even they think in terms of monitory benefits at each step so what’s wrong if employee thinks that way.
Every company keeps track of employees and their referrals. If the quality of the candidates referred are not up to the mark such employees referral weightage/image-index reduces over the time. This way companies are able to control employees who are referring candidates just for the sake of seeking money.
Companies also track the performance/loyalty of referrals so that in future they can take appropriate decisions about whose referral to be given more priority.
Regards,
Ritesh
From India, Pune
Thanks to all of you.
I do understand the importance of rewarding an employee for a good referral and I agree with your views on this topic. I hope that you all would be in agreement with me that any process would be beneficial when is it framed appropriately, administered and put under control, like Rinky has suggested a few valuable points to put a check on it's effectiveness.
Thanks once again and wish you a very Happy Independence Day.
Jai Hind...
Anup Srivastava
From India, Hyderabad
I do understand the importance of rewarding an employee for a good referral and I agree with your views on this topic. I hope that you all would be in agreement with me that any process would be beneficial when is it framed appropriately, administered and put under control, like Rinky has suggested a few valuable points to put a check on it's effectiveness.
Thanks once again and wish you a very Happy Independence Day.
Jai Hind...
Anup Srivastava
From India, Hyderabad
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