Employee Referral Policy

Published on July 31st, 2023


What is the Employee Referral Policy?

An employee referral policy is a set of guidelines and procedures established by a company to encourage its current employees to refer potential candidates for job openings within the organization. 

This policy outlines the process, eligibility criteria, incentives, and other relevant details related to employee referrals. The primary goal of an employee referral policy is to tap into the networks of existing employees to attract high-quality candidates who are a good fit for the company's culture and requirements.

1. Purpose

The purpose of this Employee Referral Policy is to encourage our current employees to actively participate in the recruitment process by referring potential candidates who align with our company's values, culture, and skill requirements. Employee referrals can help us attract high-quality talent and promote a positive working environment.

2. Eligibility

All regular full-time and part-time employees are eligible to participate in the employee referral program. Contract, temporary, and intern employees are excluded from this program.

3. Referral Process

3.1 Submission

Employees who wish to refer a candidate must complete the official Employee Referral Form, which can be found on the company's intranet or HR portal. The form should include the following information:

  • Referring employee's name and contact information
  • Candidate's name, contact information, resume/CV, and a brief description of their qualifications
  • Relationship between the employee and the candidate (e.g., friend, former colleague)

3.2 Candidate Qualifications

Referred candidates must meet the minimum qualifications for the position as outlined in the job description. Referrals that do not meet these qualifications will not be considered for the program.


4. Program Incentives

4.1 Referral Bonus

Upon successful hiring and completion of the referred candidate's probationary period, the referring employee will be eligible to receive a referral bonus. The bonus amount will be determined by the company and may vary based on the position's level and criticality.

4.2 Bonus Payment

Referral bonuses will be paid out through the company's regular payroll process. Applicable taxes will be deducted as per company policy.

5. Candidate Evaluation and Selection

Referred candidates will go through the same selection process as other applicants. They will be evaluated based on their skills, experience, and alignment with the company's values. Referred candidates are not guaranteed employment solely based on the referral.

6. Confidentiality

Employees who refer candidates must respect the confidentiality of the recruitment process. They should not share sensitive information about the hiring process, other candidates, or the status of the referred candidate with anyone outside the HR department.


7. Program Integrity

The company reserves the right to disqualify referrals and revoke referral bonuses if it is determined that an employee is attempting to exploit the program or manipulate the referral process. This includes providing false information about the candidate or engaging in unethical behavior.

8. Program Changes

The company retains the right to modify or terminate the Employee Referral Program at any time. Changes will be communicated to employees through official company communication channels.

9. Contact Information

For any questions or clarifications regarding the Employee Referral Program, employees can contact the HR department at [HR email/phone number].

This policy is effective as of [Effective Date] and supersedes any prior policies related to employee referrals.

[Company Name]


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Pankaj Deshmukh

Pankaj Deshmukh is a digital marketing professional working with HireQuotient. He strongly believes in the never-ending process of learning and stays updated with the latest trends in order to produce valuable content.

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