Creating a Healthy Employee Referral Culture

Tawfiq Abu-Khajil
December 3, 2023
2 min read
What is an Employee Referral Culture?
Employee referral culture is an environment where employees are encouraged to refer qualified candidates for open positions. This culture can be built with structured programs, training, incentives, recognition, and making referrals a key component of recruitment. It can lead to high-quality hires a

Employee referrals are a strong avenue for companies looking to hire new talent. They tend to result in higher quality hires, faster recruitment times, and reduced costs. 

In this article, we'll explore some strategies that companies can use to encourage their employees to make referrals and build a healthy culture of referral behavior.

Getting some basics out of the way, some easy wins to encourage a healthy employee referral culture are: 

Create an Employee Referral Program (obviously!) 

An employee referral program is a structured approach to employee referrals that provides incentives for successful referrals. These incentives can include bonuses, recognition, and other rewards. A well-designed referral program can also help to build a culture of referral behavior within the company. This Employee Referral Policy Template might help. 

Clearly communicate the benefits of employee referrals

Many employees may not fully understand the benefits of employee referrals or may not realize that they are eligible to participate in a referral program. Companies can address this by making sure that all new employees are aware of the referral program and its benefits. See how Eqo can help you send SMS & email campaigns to new employees informing them about your referral program.

Encourage referrals at the right time

Annual bonuses, promotions, raises, company excursions – these are all times that employees are at their happiest working at your company. Remember to remind your employees about your referral program when they are feeling most valued and appreciated. 

Ask your new Hires for referrals after 3 months

New hires are the best source of employee referrals. They are still closely in touch with colleagues they had in their previous organization and can easily refer a few folks to the new company they just joined. 3 months is a good time for them to get a feel of your company and still remember who they used to work with at their previous employer.

See how Eqo can help you create a healthy employee referral culture

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Eqo - Employee Referral Tool