Companies use bonus programs for a number of reasons — but the most prevalent use revolves around recruitment.
Referral bonuses are employers’ most frequently offered premium payments, according to the Bonus Programs and Practices report by World at Work.
The report found that 60% of employers offered referral bonuses last year. Other popular programs included, sign-on (54%), spot (43%) and retention (25%) bonuses.
When employers have a referral program in place, an average of 13% of their new hires come from referrals, the report revealed.
Experts believe that referral programs can serve the dual purpose of helping companies with hard-to-fill positions, while also increasing the morale and pride of the workers who refer new successful hires.
Readers, what type of bonus programs do you offer? Let us know in the Comments section.
