Every employee knows someone who knows someone else, and their neighbour has a guy who’d be perfect for a specialised position in your company. Maybe they aren’t actively looking for work, but your employee’s efforts open their eyes to a job opening and they get to thinking.
Friends and acquaintances are a major driving force behind career changes
Informal, relaxed and open communication gives a potential candidate insights into the inner workings of your company and their specific job description. Many such activities bring new people into an interview. A referral bonus is a reward if a recommended candidate becomes a full-fledged reinforcement and is retained by the company for longer than, for instance, one year.
While expenditures on employee bonuses are generous, the company ultimately saves a significant amount elsewhere on recruitment. Conversely, there are companies where employees responsible for bringing new blood into the company are provided with non-financial bonuses, such as more time off or vouchers for variou....
Referral bonuses are a good way for companies to build a community among employees. It is in the employee’s own best interests to recommend a high-quality candidate as they are personally engaged in the entire process. At any rate, employees are continuously informed of open jobs via internal communication and the referral programme has clearly defined rules.
A referral bonus, or a bonus for recommending an employee, is most prevalent in Central Europe, specifically in the Czech Republic (11.8%) and Slovakia (10.4%). These countries have hit a wall when it comes to identifying qualified employees and corporate recruitment processes tend to be drawn out and expensive. Rewarding employees for their assistance in recruiting new people to a company comes across as a win-win strategy towards alleviating these issues. The employee receives a bonus and the company gains new human capital at an overall cost savings. In other countries in the region there is a significant space for growth.
Referral bonuses were first employed in Central and Eastern Europe by private foreign companies. They have long identified people as capital and appreciate the untapped potential offered by the social relationships of their employees, which may spread into various social circles and groups.