Employee Referral Policy Template: The One Document Every Employer Needs

This Employee Referral Policy Program template is ready to be customised to your company’s needs. It is merely a starting point to be used as a general guideline. It may not take into account local laws and is not a legal document.

Policy Brief & Purpose

The purpose of this policy is to provide clear guidelines and procedures for our Employee Referral Program.

We value the input of our employees and trust their judgment in identifying potential candidates who can contribute to our company's success.

This policy aims to ensure a seamless referral process for both our employees and the individuals they refer.

Scope

This Employee Referral Program Policy applies to all individuals who refer candidates to our company.

Policy Elements

Employee Referral Reward

Our company offers rewards to employees who successfully refer candidates. If you know someone who would be a good fit for a position at our company, we encourage you to refer them. If the referred candidate is hired, you will be eligible for a referral bonus of [£3000 or a trip to a destination of your choice/Amazon coupons]. In some cases, for hard-to-fill roles, the referral bonus may be higher. For example, if your referral is hired as a [Senior Technician], you may receive [£6000].

Additional Rules for Rewards:

  • We guarantee that rewards will be paid out within [one month] of the candidate’s hiring date.
  • There is no limit to the number of referrals an employee can make. All rewards will be paid accordingly.
  • If multiple employees refer the same candidate, only the first referrer will receive the referral rewards.
  • Referrers are still eligible for rewards if a candidate is hired at a later time or for a different position.
  • Referral rewards may be subject to taxation.

Who Can Make Referrals?

All employees are eligible to participate in our referral program, except for:

  • Those not in good standing with the company and not under and disiplinary action.
  • Senior management (CEO, Managing Director).
  • Recruiters.
  • Hiring managers for positions they are hiring for.

However, hiring managers can refer candidates for positions in different departments, offices, or functions that they are not directly or indirectly responsible for. This exception does not apply to executives and senior management.

Vendors, contractors, consultants, and former employees are also eligible to refer candidates.

Who can be referred?

To qualify for rewards, referred candidates must meet the following conditions:

  • They should not have applied to our company for at least one year.
  • They should be hired as permanent full- or part-time employees, excluding temporary employees or contractors.

We encourage employees to explore open positions and leverage their social and external networks to identify potential candidates.

You must obtain consent from the person you are referring.

People can be referred by provide the contact’s name, contact details and any other relevant details [via email to HR].

We will acknowledge receipt of the referral and keep you updated on the status of their application.

Rewards and Changes

We reserve the right to modify our referral bonus program over time to introduce more enticing incentives. Additionally, certain rewards may be discontinued if they are deemed ineffective or inefficient.

Any changes to the program will be communicated clearly and in a timely manner.

Employees who referred candidates before the discontinuation of a reward will still receive the appropriate reward.

Treating Every Application Equally

Lastly, we would like to emphasise that we are an equal opportunity employer and do not discriminate against protected characteristics. Referred candidates may receive priority in the hiring process, but all candidates will be treated fairly and go through our established procedures.

If you need any more information about employee referral programs we’ve got a guide you can download: Getting Employee Referrals and a comprehensive article: Employee Referral Schemes.

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Geoff Newman has dedicated his entire career to recruitment. He has consulted for many well-known international brands, and worked with over 20,000 growing businesses. He has helped fill over 100,000 jobs.

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We literally wrote the book on...

The secrets of great recruitment

The Secrets of Great Recruitment is a top-seller. It is easy to read and wastes no time in giving powerful actionable strategies you can use straight away.