Why Referral Programs are a Win-Win for Employers and Employees

Nov 30, 2023 | Business Blog

Why Referral Programs are a Win-Win for Employers and Employees

Nov 30, 2023 | Business Blog

Finding the right employees for your company can be a daunting task. It takes time, money, and resources to advertise job openings, sort through resumes, and conduct interviews.

This is where employee referral programs can provide a valuable solution.

By leveraging the networks of current employees, companies can tap into a wider pool of potential candidates while also vetting them through trusted sources. Referrals often lead to hires that fit the company culture, are more engaged and productive, and are likely to stay longer.

In this article, we will explore the benefits of employee referral programs and provide tips for creating an effective program that will help you find and retain top talent. We will also discuss the importance of comprehensive onboarding programs that make new hires feel welcomed and engaged from day one.

Employee Referral Programs

Do your current employees know your future employees? Develop a referral program to find out.

Employee referral programs can help you vet potential candidates through current employees who have worked with applicants in the past. Here are some tips to help your referral program become successful.

New hires who come to you by referral often fit your company culture, are more engaged and productive, and more likely to stay longer. So, now that you know how referrals can benefit your organization, how do you get employees to offer recommendations.

Tips for Bringing on Your Next Teammates

Many employees would offer recommendations without incentives — but why leave it to chance? When it comes to creating effective employee referral programs, ensure that yours includes the following elements:

Incentives: These can be cash-based, such as gift certificates and referral fees, or non-cash-based, such as extra time off.

Ease to use: Create an online portal where employees can formally make suggestions. Word of mouth recommendations leave out important details, including the potential applicant’s work history. Putting the referrals online allows employees to document their reasons for making the recommendation and information on the person’s background, such as an uploaded resume.

Feedback: Send email updates on the status of the position you are filling. Are you moving forward with a better-qualified candidate? Is your employee’s referral still under consideration?

Recognition: When employees successfully recommend a new hire, find a way to recognize their contribution. When you send out the welcome email, you could mention the referring employee and thank them for their diligence.


After you hire a referred candidate, it’s important to execute comprehensive onboarding programs to help new hires feel engaged and welcomed.

Here are a few onboarding tips to make new employees feel at home and productive from the first day forward:

Create an orientation package that includes your company’s norms and values to help new hires acclimate quickly and learn the layout of the business. Videos are a great format for orientation content.

Now that your new hire understands the culture. Give them a first assignment that increases their organizational knowledge without overwhelming them.

Create a network of mentors. Provide names and contact information for subject matter experts in the areas the new employee will function. If mentors are co-located with the new hire, arrange for a face-to-face introduction.

Develop a learning mindset. New employees will want to make their mark. Use this excitement to let them find their way in the organization and invite fresh ideas to make processes run more smoothly. If new hires feel devalued or unheard, they are unlikely to offer ideas based on their experiences that could benefit your organization. They are also more likely to leave within the first year.

Finally, include new hires on your employee referral steering committee. They may have valuable insight into how you can improve the recruiting and onboarding processes. Also, it’s never too early to ask for recommendations from new and existing employees, who may already know your next employee.

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