Getting started with your referral program is a good step in the right direction. When deciding what type of reward you're going to give your employees, you have two choices. You can either give monetary or non-monetary rewards. This article will look at both options so you can best decide what suits your organization
The most common type of reward given for a successful referral is a cash bonus. According to our internal survey, 95,6% of companies give out a cash reward. The amount itself can be chosen, but on average companies give out € 1.225 when they hire someone.
Giving more money to your employees will not increase their involvement in the referral process. This is a common mistake made. There is no golden rule as to how much you should reward. Instead, companies should experiment with what works best for them. For example, you can start by giving a cash reward when the person is hired. Then you can end up with a non-monetary (movie ticket) reward when one of your employees shared a new candidate with you.
Organizing an event with your best ambassadors will create a more cohesive group among your employees. The event itself can be chosen by the employer or even by the employee. The most common type of event organized revolves around charity. You can plan a day where your employees go help a certain shelter or go raise funds together for example. This will give them a feeling of accomplishment and they will feel valued.
The most known gift card voucher is Amazon. Giving your employee a certain amount that they can spend on Amazon is a great way to reward them with something simple. They will be able to buy anything they need and they will show you gratitude for it.
You could also reward your employee with a gift card to the movies. This is widely used, especially in Europe. It is also a simple yet effective reward that will make your employee happy.
Another option could be to give them another gift card for a wellness day for example. Your employee will be able to take a mental break from work and relax for a day. Combining this with a day off will bring this reward to the next level.
If you want your reward to be more memorable and valuable in the eyes of your employee, giving them a promotion will do the trick. This is not applicable to every company and to every successful referral but it can be given to your best ambassador. Your employee will feel very valued within the company, thus he will perform better. Your employer brand will also benefit from this. From the outside, you will appear as a company that cares about its employees and values their input.
For companies of a more substantial size with a more developed budget, this would be a feasible solution. Giving your employee a car will be more memorable to them than a cash reward. Whenever they drive it, they will remember how they got it. This will also create a competition between your employees and get more of them involved in the referral process. Another benefit of this solution is that employees will stay longer in the company. Firstly because they will enjoy the upgrade. Secondly, because company vehicles are contract-based so they bound to the company for at least a couple of years.
If you don't have enough budget, this solution might be for you. Giving an extra week holiday to your employee for their help with the recruitment will get them motivated to keep referring in the future. Other employees might also get inspired by this.
Companies with more budget can even take this reward further by paying for the holiday. This will not only motivate them but it will also better your employer brand as they will surely post about it on their social media.
There is no right solution that works for every company. Experimenting with different options will show what is best for you. The goal of all these rewards is to improve your relation with your employee. As a second goal, we can also say that this is aimed at improving your employer branding. Combine this strategy with your employee referral tool and it will be successful.
Ibrahim Moustaine is the Growth Marketer within Nakama