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What is an Employee Referral Program Policy?

  • book T-ROC Staff
  • calendar Jun 4, 2020
  • clock 6 mins read


What is an Employee Referral Program Policy?

There’s an old saying that rings absolutely true regardless of the industry – a company is only as good as its people.

Recruiting qualified candidates to fill new job openings is one of the toughest challenges a business can face. But, perhaps, that’s because too many businesses fail to look in the right place or use the right resources. One of the best ways to find that great new hire is to consult the good people already coming to work every day.

An effective employee referral program is the ultimate win/win for a company. You streamline the resources needed to hire, plus, you’re interviewing candidates who, in many ways, have already been vetted by a trusted employee.

If you already have an employee referral program at your company that’s great. If you don’t, here are a few things to consider in order to create one that delivers the best possible candidates for hire.

First and foremost, make sure you’ve built a great place to work

Your current employees are the ones making referrals. If they’re not happy at work, why would they invite family and friends they care about to join your company? A referral isn’t just about grabbing some bonus cash. A good referral is testament to how that employee feels about your company. If it’s not a great place to work, don’t expect a lot of referrals. 

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Have clear referral program guidelines in place

Provide employees with resources that give them a clear understanding of the referral process. Who is eligible to participate. How and when the referral reward is provided. What resources employees should use when making a referral. Are there are any limits in the number of referrals an employee can make (though we recommend setting no limits). Clear parameters will help make the program easy to follow and far more likely to attract participation.

Make sure every employee knows about it

Use resources to market your referral program internally so that everyone has a chance to take advantage of it. A lot of times, referral policies fall by the wayside. They exist but they’re not top-of-mind, so employees rarely submit a referral.

Make sure there’s parity in the referral reward

The cash bonus or reward given should not be dramatically different based on the level of the position. For instance, referring for an executive hire shouldn’t earn someone a much larger reward than if he or she had referred for a staff member position. It’s important to create a program that acknowledges every hire is important – from the top on down.

Stay in touch with both parties during the hire process

Once an employee submits a referral and the candidate is interviewed, keep both parties updated. Let them know the status of the position being filled. Obviously, you’re not obliged to hire any candidate, but it’s just good form to provide regular updates as no one likes being kept wondering.

Measure your referral program

A solid employee referral program should generate measurable success. Make sure your program is working by reviewing the metrics regularly.  How many referrals did you get? How many did you hire? How many employees participated? How well did referred employees perform on the job? 

Involve your corporate leadership

They may not be able to submit a referral, however, the leaders of your company can play a key role in the success of your program. Get them involved. Make sure they buy into the program and promote it among their departments.

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To make life a little easier, we’ve created this downloadable Employee Referral Template that you can adapt to the specific requirements and offerings of your program. Use it as a benchmark and build your own referral policy around it. Good luck!  (DOWNLOAD TEMPLATE)

Please note that this referral policy document is a template. It may not comply with individual state laws or your corporate requirements. It’s important to vet this, or any other referral policy document before implementing any referral program.

Employee Referral Program

We believe the people who work at [COMPANY] are the best in the business. So, who better to recommend quality candidates to fill our important positions than you? We’re proud to offer a financial reward for every new employee you bring [COMPANY]. 

Referral Details

If you know someone you think would be a valuable asset, please refer them to our company. You can submit an Employee Referral Form through [SUPERVISOR/HR/YOUR DISCRETION].

  • If we hire your referral, you will receive a bonus in the amount of [$XXX].   
  • Your bonus will be paid out with [XX days] from the day referral is officially hired.
  • There are no limits to how many people you can refer or the number of bonuses you can receive.
  • Should two or more people refer the same candidate, only the first Employee Referral Form submitted will be considered eligible for a referral bonus.


All employees of [COMPANY] are invited to participate in the Employee Referral Program, except: [SENIOR MANAGEMENT, HR PERSONNEL, RECRUITERS/YOUR DISCRETION]

Employees may not refer a candidate for a position that they are directly responsible for managing.

Referral Eligibility

As long as you think they’d do a good job, most people are eligible for our employee referral program. However, there are a few restrictions:

  • Referral must not have applied for a position with [COMPANY] within the past [MONTHS]
  • Referral must not have been dismissed from [COMPANY] previously for poor performance, insubordination, breach of rules, or ethics misconduct.
  • Referral must be hired as a permanent full-time employee of [COMPANY]. Not on a contract or project basis.

We are an equal opportunity employer and will not discriminate against any referral based on race, religion, age, gender, identity or lifestyle. All referred candidates will receive equal consideration for hire based on the position requirements and skillsets needed to perform.

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TROC is the leading provider of premier staffing outsource, software, managed technology services, and consumer insights for the top global brands, retailers, manufacturers, service providers, and distributors. The company’s distinctive solutions address the entire lifecycle of brick and mortar brand and retail operations by combining retail expertise, best practices, and technology to help its customers achieve sales and operational excellence as well as a sustainable competitive advantage. As a Retail 4.0 thought leader, T-ROC enables companies with high-value products in the physical world to thrive through the digitalization of the physical shopping experience. To learn more about T-ROC, visit

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