Bonus for Candidate Referrals

Referrals Blue MarkerReader Question: We want to offer a bonus for employees who refer candidates for open positions that result in a newly hired employee. What do you see as the standard for these types of bonuses and policies?
– Office Manager, Manufacturing Firm

Employee referrals are a great way to help your sourcing effort. The standard these days varies…but most firms offer anywhere between $500 and $2,000 per hire. The bonus tends to be contingent on the new hire staying with the firm for a period of no less than 3-6 months, at which time it is paid. One other bit of advice – hand out the checks at a company meeting. You get great internal buzz and PR, motivating even more referrals in the future.