Free Employee Referral Policy

We are pleased to include a sample Employee Referral Policy that you can use in your business.

Remember to review and/or adapt this policy in accordance with company-specific requirements and all relevant legal considerations.

Employee Referral Policy

Scope 

As you bring unique qualities that ensure our success, we believe that there’s no one better positioned to identify the next perfect employee.  More importantly, we want to reward your contribution to attracting new people.

Process

Refer someone today who you believe will add value like yourself by simply completing the Employee Referral Programme Form and submitting their CV to the Human Resources Department.  In return, you’ll earn an employee referral bonus if this person is hired at [INSERT COMPANY NAME]. 

All we will need is:

Your referral’s CV

&

The completed Employee Referral Programme form.

So call your friends today, submit their resumes, and let us reward you for your contribution.

The Rules

To participate, you must.

Refer the candidate by submitting their CV along with a fully completed Referral Form to the Human Resources Department.  If a Referral Form is not submitted, no reward will be given.

Each referred candidate will be added to our ERP database.  They will remain active in the ERP database for a period of six months.  After which, you must resubmit the referral.

Employee referral bonuses of [Insert Agreed Amount] will be awarded for referrals hired for exempt permanent positions. Half this amount will be awarded for referrals appointed to non-exempt permanent positions.  No bonus will be paid if the referral is placed in a contract, temporary, summer, or intern position.  Awards are paid through payroll and are subject to taxes.

The ERP is open to all [INSERT COMPANY NAME] employees on active status.

The ERP is not accessible to employees at the director level or those involved in the hiring decision-making process, specifically Human Resources.

Referrals of temporary, summer interns, temporary agency workers, independent contractors, and consultants who are currently employed with [INSERT COMPANY NAME] will not be considered.

Former employees of [INSERT COMPANY NAME] or any other [INSERT COMPANY NAME] subsidiary must have been absent from the company for at least one year before they will be considered valid referrals.  Former temporary agency workers, independent contractors, and consultants must have been absent from the company for at least six months before they will be considered valid referrals.

Awards will not be paid if any third party or agency is already eligible for a placement fee.

If more than one employee submits the same name, the earliest referral submitted will be eligible for the award.

Bonuses will be awarded after the referral completes 12 months of satisfactory employment with [INSERT COMPANY NAME].  The onus lies with you to claim your bonus, and it will only be accepted if you are still an employee on active status with [INSERT COMPANY NAME] or any other [INSERT COMPANY NAME] subsidiary at the end of these 12 months.

Human Resources reserves the right to make the final decision on the qualification of all employee referrals.

To claim your award, email your relevant HR contact quoting your referral’s name and ID number.  Awards will be included in the month’s salary following a 6-month waiting period, with the appropriate tax deducted.

RESPONSIBILITIES

DEPARTMENT OF HUMAN RESOURCES

The Department of Human Resources is responsible for the following:

Maintaining and overseeing all Employee Referral Programme at [INSERT COMPANY NAME].

Initiating or recommending immediate action in response to circumstances where warranted.

Analysing and reporting Employee Referral Programme information regularly, with recommendations for addressing problems/issues identified.

EMPLOYING DEPARTMENT

Employing Departments are responsible for the following:  

Ensuring that the Human Resources Department is informed immediately of all Employee Referral Programme information.

Managing all documentation associated with the Employee Referral Programme.

Initiating follow-up action where appropriate.

EMPLOYEES

Employees are responsible for informing their managers or the Human Resource Department of their intention to submit candidates using the Employee Referral Programme Forms at [INSERT COMPANY NAME] and to adhere to all provisions of this policy

REPORTING

The Department of Human Resources will submit an Employee Referral Programme report to the Chief Executive Officer regularly.  

Any actions the Human Resources Department deems necessary to address any concerns.

REVIEW OF PROCEDURE

This Procedure will be reviewed within twelve months of its initial implementation.