Research shows that referral bonuses are still the most popular employee bonus program. But does this perk do more harm than good?
That all depends on how the referral program is set up.
Many companies offer employees monetary bonus for simply recommending their colleagues to the company. But that can be risky. Reason: Cash bonuses may temp workers to recommend underqualified people to the company — particularly if raises have been scarce.
HR experts recommend that employers have a very specific set of criteria in place for employees to receive a referral bonus.
Example: “The candidate you recommend must stay with the company for at least one year and complete a certain number of tasks before the referral bonus can be awarded.”
Readers, does your company offer referral bonuses? Is so, what are the criteria.
