Should companies pay employee referral bonuses?

It depends on situation, if there is emergency and we need to complete  assigned task in deadline, Such type of schemes can help  a lot.

     

 

Referral programs can do wonders for a business. In my experience referred employees have higher retention rates and increase employee engagement in their company. Therefore, a reward or bonus for such referral program is recommended and its purely depends on the type, size and the brand of the business.

 

 

 

no its based on your benefit plan and your scope of employees involvement you aim , many companies especially the heavy industrial companies make the bonuses to involve the employees in the production plan  and motivate them to get the targets (full image)

Employee Referral Program is a very good initiative from a company, unless if it is abused widely.

 

there are few aspects in this.

 

-- An Employee who refers a competent person/candidate/talent is rewarded once his referral is deemed a positive employee and is hired by the firm.

 

-- The Referral Bonus is given to an employee only if his referral passes the mandatory Probation or a6 months period and proves that he/she can indeed add value to the team and or to the firm

 

-- Reduces a lot of time & cost incurring on Sourcing and or head hunting

 

-- An Employee who's been hired on a referral programme shows high commitment and morale in most of the cases

 

-- The employees can also be given reward points that gets accumulated for a reward bonus/monetary bonus.

 

-- companies exercising this policy should make sure they budget for the same in the recruitment budget to avoid disappointment and making them demotivated

 

-- Attrition level is brought down

 

yes because it will help establishment to reduce recruitment cost 

It makes sense to pay employee referrals if the referred employee is able to make it to the later rounds of interviewing or get hired on. Referrals should also be based on a percentage of revenue that the employee generates, so someone who brings in200,000 in revenue might get2000 per referral, or1% of the revenue they brought in. This encourages people to be meritocratic, as hard work is directly rewarded