Employee Referral Policy Template

Tawfiq Abu-Khajil
Co-Founder
December 3, 2023
Blog
2 min read
What is an Employee Referral Policy?
An Employee Referral Policy is a formal set of guidelines for employees to refer candidates. It includes eligibility, referral process, rewards, and program administration.

Here’s a draft template you can start with for you Employee Referral Program Policy.

Objective

The objective of the Employee Referral Program is to encourage and reward employees for referring qualified candidates to join our organization. This program is designed to tap into the existing networks of our employees and leverage their connections to identify top talent that aligns with our company's values and culture.

Eligibility

All current full-time and part-time employees, except for members of the talent acquisition team, are eligible to participate in the Employee Referral Program. Temporary, contract, and seasonal employees are not eligible for participation. (But see how Eqo can help you include all types of employees in your employee referral program) 

Referral Process

Employees who wish to participate in the Employee Referral Program must submit their referral through the designated referral portal or method established by the company. The referral should include the candidate's full name, contact information, and any other relevant details. Referrals submitted without complete information may not be considered. 

Eligible Referrals

Referrals must be for external candidates who are not currently employed by our organization and have not been previously referred for the same position. Referrals must meet the minimum qualifications for the position and must be eligible to work in the country where the position is located.

Reward

Employees who refer a candidate who is subsequently hired and successfully completes the probationary period, as defined by the company, will be eligible for a referral bonus. The referral bonus amount will be determined by the company and communicated to employees at the time of the referral.

Payment of Referral Bonus

Referral bonuses will be paid out in accordance with the company's regular payroll schedule. Taxes and other applicable deductions will be withheld as required by law. Referral bonuses are subject to change or termination at the company's discretion.

Employee Obligations

Employees who participate in the Employee Referral Program are responsible for obtaining the consent of the referred candidate before submitting their referral. Employees should not refer candidates who are not interested in being considered for employment with the company or who do not meet the minimum qualifications for the position.

Confidentiality

Employees who participate in the Employee Referral Program are expected to maintain the confidentiality of any information they receive about referred candidates, including contact information, and other personal details. Sharing such information with unauthorized parties or using it for any purpose other than the referral program is strictly prohibited.

Non-Discrimination

The company is committed to a fair and equitable referral program and prohibits discrimination based on race, color, religion, sex, sexual orientation, gender identity, national origin, age, disability, veteran status, or any other legally protected status. Referrals will be evaluated based on their qualifications and fit for the position, regardless of the referral source.

Program Administration

The talent acquisition team will administer the Employee Referral Program and reserves the right to interpret and enforce the program policy. The company may modify or terminate the program at any time without prior notice.

Policy Acknowledgement

By participating in the Employee Referral Program, employees acknowledge that they have read and understood this policy and agree to comply with its terms and conditions.

Compliance with Company Policies

Employees participating in the Employee Referral Program are expected to comply with all other company policies, including but not limited to the company's code of conduct, data privacy policies, and anti-harassment policies.

Effective Date

This policy is effective from the date of issuance and supersedes any previous policies or practices related to employee referral programs.

This Employee Referral Program Policy is intended to provide general guidelines and is not a contract of employment. The company reserves the right to modify, interpret, or terminate the program at any time, with or without notice.

See how Eqo can help you track and manage your employee referrals automatically.

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