Employee Referral Program Policy Example

Table of Contents

    What is Employee Referral? 

    An employee referral is a recommendation made by a current employee of a company for a potential candidate to fill a job opening. Employee referrals are commonly used by companies as a cost-effective and efficient way to find new hires. By tapping into their current employees’ networks, companies can identify high-quality candidates who may have the necessary qualifications and skills for the job.

    Employee Referral Program Template

    As (name of company) grows in business size and over countries, we require new sets of talented individuals to join us constantly. As an example of an ideal employee, look around you and at yourself. Our current set of employees possesses the highest standards and qualifications that match and mostly supersede industry standards. Therefore, to further the mission and vision of the company through you, we have created this policy. 

    Policy Brief and Purpose 

    This policy is in place to ensure an active pipeline of candidates to the company for open positions. The employee referral policy is created to incentivize current employees to bring in friends and family to the organization. 

    We are seeking the best quality candidates via traditional hiring methods and the referral policy.

    Who can be referred 

    To be eligible for the employee referral program, the referred candidates must meet the following criteria: 

    • They must not have applied for a job at [Company Name] within the past [Time period, like 6 months]. 
    • They must be legally authorized to work in the [Insert the Country or Region]. 
    • They must meet the qualifications and requirements for the job opening as stated in the job description. 
    • Candidates related to an employee, such as a spouse or family member, are not eligible for the employee referral program. 

    How to refer a candidate 

    To refer a candidate, follow the steps below: 

    • Visit the company’s referral portal and see open roles. 
    • Log in using your office credentials. 
    • Look for the open position 
    • Fill in the form with all the accurate and valid details. 
    • If deemed fit for the role by HR, they will be sent an email with a direct-apply link. 

    Employee Referral Process 

    The process is as follows: 

    • Employees identify a potential candidate: Identify the one potential candidate, who they believe would be a good fit for an open position in the company. 
    • Employee submits referrals: Submit the referral through the employee referral portal, which can be accessed on the company’s intranet, including details like the candidate’s name, contact information, and resume, as well as the job title and department the candidate is being referred. 
    • HR reviews referral: The HR team will review it and determine if the candidate meets the qualifications. 
    • Candidate is contacted: If the candidate meets the requirements, the HR team reaches the individual and schedules an interview. 
    • Hiring Decision: If the candidate is selected for the position and accepts the job offer, the referring employee will be notified of their successful referral. 
    • Bonus Payment: The referring employee will receive their bonus payment after the new hire has completed their probation period. 

    Approval Required

    As stated in the employee referral policy, the following approvals are required for the payout: 

    • Hiring approval from the immediate reporting manager. 
    • Approval from the Head of the Department and HR Head. 

    Payout Matrix 

    Our program also includes general payouts for successful referrals. The following are the details: 

    Level of Referred Employee: Entry Level

    Referring Employee:

      • Same Gender- Rs.10,000 
      • Different Gender-Rs.15,000
      • Person with Disability- Rs. 20,000 

    Level of Referred Employee: Mid-Level

    Referring Employee:

      • Same Gender- Rs. 20,000 
      • Different Gender-Rs.30,000
      • Person with Disability- Rs. 40,000

    Level of Referred Employee: Senior Level

    Referring Employee:

      • Same Gender- Rs. 30,000 
      • Different Gender-Rs.45,000
      • Person with Disability- Rs. 60,000


    • The payout will be made only after the referred employee completes the probation period successfully. 
    • The company reserves the right to modify or terminate the Employee Referral Program at any time. 



    Turn Around Time (TAT) 


    Referral Made N/A 

    Employee Referrer 

    Resume Screening 

    3 days 


    Initial Interview 

    7 days 

    Hiring Manager 

    Final Interview 14 days 

    HR and Hiring Manager 

    Offer Made 2 days 


    Referral Accepts N/A 

    Employee Referrer 

    Onboarding 30 days 

    HR and Hiring Manager 

    Performance Review 


    HR and Hiring Manager 


    7 days HR and Payroll Department 


    1. These are the guidelines that the employees must follow: 
    2. All the referrals must be submitted through the company’s official employee referral portal, and referrals through other channels will not be considered. 
    3. Referrals must be only for the open positions officially posted on the company’s website or job portals. 
    4. There is no limit on the number of referrals a single employee can make in the fiscal year. 
    5. Referrers will be considered on a first-come, first-served basis, if they meet the requirements. 
    6. Employees must disclose any conflicts of interest, such as personal relationships, beforehand with the referred candidate. 
    7. Employees may not refer themselves for open positions. 
    8. The policy can change at the discretion of the HR department, at their will. 
    9. Contract and part-time workers are not eligible for this scheme and should therefore refrain from asking for dues.

    Program Administration

    The HR department will solely administer the entire employee referral program. 


    Modification and Termination  

    [Company’s Name] reserves the right to modify or terminate this policy at any time, with or without notice. 



    [Company’s Name] encourages all employees to refer potential candidates who align with the company’s values and culture. Thank you for your participation in the employee referral program. 


    1.What is an employee referral policy, and how does it work? 

    An employee referral policy is a program that rewards employees for referring qualified candidates for the various open positions in the company. It helps in attracting potential employees at reduced recruitment costs. 

    2.Who is eligible to participate in the Employee Referral Program? 

    It depends on the company’s policies, but most of the time only the full-time employees are allowed to participate in the program. 

     3.What kind of rewards can employees receive for successful referrals? 

    Employees can receive rewards such as cash bonuses, gift cards, extra vacation days, and other incentives for successful referrals, depending on the company’s policies and practices. 

     4.Is there a limit to the number of referrals an employee can make? 

    The limit on the number of referrals an employee can make varies depending on the company’s policies and procedures. 

     5.How will referrals be tracked and measured? 

    Referrals can be tracked and measured through a referral tracking system that monitors the progress of each referral, from submission to hiring. 

     6.What happens if one employee refers to the same candidate? 

    Suppose such a situation arises when the same candidate is referred to more than once. In that case, the company considers only the first referral and provides no additional payout for subsequent referrals.  

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