Poll: Does Your Organization Pay a Referral Bonus?

March 20, 2019
Poll
Inside HR
Recruiting & Hiring
Read time: 3 mins

In our last edition of Inside HR, we asked organizations if they pay a referral bonus to increase recruiting efforts.

Poll Response Inside HR March 2019

Seventy-five percent of respondents indicated they do, while 17% do not, and 8% are considering it.

For those that use a referral bonus as an incentive, some pointed out specific aspects of their program, such as: 1) referral bonuses are given to the referring employee and the new hire, 2) employee needs to be in good standing, 3) bonus is the net total after taxes.

While responses were all over the board in varying amounts and payout schedules, the majority had a staggered payout approach and average was between $500 and $1000. None of the bonuses had payouts beyond 13 months.

Some indicated they are looking to increase their referral bonus amounts or offering higher amounts for more difficult-to-fill positions.

The following is a summary of the findings:

One-time payouts:

$100 at hire

$500 at hire

$1,000 at hire

$1,000 at 30 days

$200 at 60 days

$100 at 90 days

$250 at 90 days

$500 at 90 days

$1,000 at 90 days

$100 at 180 days

$250 at 180 days

$100 at 180 days

$500 at 180 days

$1,000 at 180 days

$3,000 at 180 days

$2,000 at one year

Staggered payouts:

$100 at hire; $500 at 180 days

$150 at hire; $150 at 180 days

$250 at hire; $250 at 180 days

$250 at hire: $250 at one year

$250 at hire; $750 at one year

$500 at hire; $500 at 180 days

$2,500 at hire; $2,500 at one year

$300 at one week; $300 at 90 days

$5,000 at 30 days; $5,000 at 60 days

$250 at 30 days; $250 at 90 days

$250 at 30 days; $500 at 90 days

$100 at 30 days; $400 at 180 days

$150 at 90 days; $350 at end of summer (seasonal)

$150 at 90 days; $150 at 180 days

$250 at 90 days; $250 at 120 days

$250 at 90 days; $250 at 180 days

$500 at 90 days; $500 at 180 days

$500 at 90 days; $500 at 180 days

$250 at 90 days; $250 at one year

$400 at 90 days; $500 at one year

$500 at 180 days; $500 at one year

$500 at 180 days; $1,000 at 13 months

$25 at hire; $75 at 180 days; $100 at one year

$250 at 30 days; $250 at 90 days; $500 at 180 days

$250 at 90 days; $250 at 180 days; $250 at one year

$250 at 90 days; $250 at 180 days; $500 at one year

$500 at 90 days; $500 at 180 days; $500 at one year

$250 at hire; $250 at 90 days; $250 at 180 days; $500 at one year

$500 at 30 days; $500 at 60 days; $500 at 90 days; $500 at 120 days

Payout differences based on level:

$100 at 300 hours for nonexempt; $500 for exempt at 180 days

$500 at 60 days for nonexempt; $1,000 at 60 days for exempt

$250 at 90 days and $250 at one year for non-exempt; $500 at 90 days and $500 at one year for exempt

$500 at 90 days for non-supervisors; $1,000 at 90 days for supervisors/managers

$500 at 90 days for non-exempt; $1,000 at 90 days for exempt

$750 at 90 days for non-exempt; $1500 at 90 days for exempt

Organizations seeking a competitive advantage are looking for ways to attract the best talent. Having a referral bonus incentive program could benefit employers by receiving candidates who may not have been looking for a job but, because of the personal referral, are interested. In addition, current employees are aware of the skills and culture of the organization and, therefore, can refer better qualified candidates, which has been shown to positively affect retention rates.

Thank you to everyone who participated in our poll!