Employee Referral Policy: Meaning & Importance

The employees know the needs and standards of the organization in the best possible way. Due to this reason, the employees may sometimes refer candidates for the vacant positions in the company. The company may reward the employee if the candidate referred by that employee is selected in the organization. This process, however, cannot be done as one wishes. The Employee Referral policy states the procedure for such referral, employee’s returns, and other rules and regulations that the employee must keep in mind. The company can use this policy as an assurance for the employees that the organization trusts their judgment. By definition, employee referral is an organized system that companies and organizations use to discover talented people by requesting their existing employees to recommend candidates from their existing networks. The Employee Referral Policy will provide a bonus to a current employee who brings new talent to the company by referring applicants selected and employed. Employee referral programs increase internal resources and networks to find unique job candidates.

The following criteria are covered under this sample policy:

  • Employees are allowed to refer individuals who fit the given job description to the organization.
  • The referred candidate will have to go through the same recruitment process as anyone else.
  • The employee’s involvement is only limited to the submission of the resume. He is not involved in any other process.
  • The rules and the procedure for employee referral.
  • Guidelines for and Calculation of the referral bonus points.
  • Exceptions to the Employee Referral Procedure.
Find everything about the employee referral policy to encourage a better referral culture in the organization, in our policy template example.

Download the policy

Schedule Demo