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Does anyone use an 'introduction bonus' to help with recruitment?

2nd Jun 2000
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My company is having problems recruiting (in the Isle of Man - very low unemployment)and I know some companies offer a bonus to staff if they succesfully introduce new recruits into the company. I would be interested to know how this works in practice.

Thanks, jan bujko
Jan Bujko

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By admin
02nd Jun 2000 13:14

Our company (in IT) uses this scheme and so does the client I am at through this company. The employees are encouraged to get their friends/acquaintances and without sayiing it - ex-colleagues into the org. If they are selected and spend more than 1 month or 3 months in the job, the referrer gets paid £2500 and in the case of client company more than that. The amount is lower in the case of non-technical staff.

The key is, no HR employees are allowed to refer, thus closing the loop and temptation to 'refer' normal applicants!

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By tim
02nd Jun 2000 16:10

Jan,
We always circulate our staff with information on vacancies before they are advertised. They are invited to tell colleagues of vacancies, who must apply in the usual way. If we like the quality of the candidates who come forward and can appoint, we may do so. The 'referring' staff member is told of the bounty which equates to a proportion of the money we have saved by not advertising.
It works in some cases; only problem is, it's not 'equal opportunities'.
Tim

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By suedevine
05th Jun 2000 16:55

Two organisations I have worked for in the last 5 years have successfully used introduction bonuses. The first paid 1,000 gbp once the new recruit had completed their 3 month probationery period. The second paid out 2,000 gbp one month after the new employee started.In both organisations the scheme was used alongside more conventional recruitment methods and proved very successful (up to 20% of new recruits came via this route)

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By AnonymousUser
05th Jun 2000 20:17

I have worked for a client in Financial Services who introduced this scheme to attract Sales staff. Staff were given £500 when someone they referred was employed. Half way paid on start and the balance after 3 months. I reviewed the whole recruitment and selection methods of this organisation and only 1 person was hired using this approach in 6 months.

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By AnonymousUser
08th Jun 2000 15:16

Jan: You might like to take a look at www.refer.com, which has just been launched with this exact purpose.

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