Mistakes that ruin referral programs

It’s no secret that referral programs are a great way to find new hires. But many managers make the mistake of just handing out bigger bonuses to current employees who make the referrals. There are better ways to get more out of your program.
Obviously, giving employees a little money when they help bring on a great new hire will motivate them to do it more often. But it’s not the only way to get your current workforce to help with the recruiting process.
Face-to-face conversations
Having a formal program in place and asking people to come to you with potential candidates can get you some great employees. But you can find even more by simply asking people for referral contacts in person.
When you have a position to fill, casually ask employees you trust if they know anyone who might be interested. Even if you don’t have a formal program or offer any rewards for referrals, you’re likely to get a few this way.
Give rewards quickly
Many programs are designed to refrain from giving out a reward until it’s clear the referral was a success. That’s an important key, but you also want to give at least part of the reward as soon as possible. After all, the referral was good enough for you to extend a job offer.
Consider giving the bonus on a part now, part later schedule, or giving a cheap reward (a restaurant gift certificate, for example) as soon as the referred hire starts.
Also, bolster your rewards with the power of recognition. Money’s great, but people will also appreciate being publicly thanked for helping build a better team. That can also work even if you don’t give out a monetary reward.
Explain the importance
Current employees have a lot to gain by helping improve the quality of the people they work with. When you develop a referral program, communicate with employees in a way that emphasizes all the things they gain by participating.
That’s especially the key with managers. Having a great team makes their jobs easier, so they should be willing to help you tell employees about the value of good referrals.
Be selective
A referral program will be more successful if you make it clear that you don’t want people to just give you the names of their friends. Make sure employees are familiar with the work of the people they’re referring. Ask them for specific examples about why they think these people would be good hires.
Also, keep track of the referrals employees give you and weigh their future suggestions based on the success or failure of previous efforts.