Do You Have an Employee Referral Program?

employee referrals

Hourly workers represent the area of highest turnover in the business world. In a survey by the Society of Human Resource Management, respondents reported that the average annual turnover for hourly workers is 49 percent, at an average cost of $4,969 per employee.

Whatever that cost may be for your business, it’s likely you’re experiencing a level of turnover that you’d like to reduce. One idea that could help you here is an employee referral program.

When you make a hire of an hourly worker, ask him or her for three names of individuals that may be possible hires for the company. It’s likely your new hire is going to give you three names of people similar to the individual you just hired.

And, consider going one step further. Offer an exchange of some kind for these three names. It could be a small cash amount or perhaps some other reward, say a gift certificate to Amazon or a local restaurant.

Your purpose here is twofold:

1) Build up a list of people you can reach and potentially hire that have some kind of a recommendation by an existing hire and

2) It gives your new hire the sense that they have helped the business they are now newly entering.

Everybody wins.




As the law varies in each area, please check with an attorney to ensure you are applying these tips within the law.




Watch our three minute video to see how we can help you hire the right people.