Hey Everyone, I want to understand how a Referral bonus works for an IT Startup, and how to define the referral bonus amount, could anyone help me with this?

Thanks for asking Albus

Referral bonus amount cane be defined based on factors such as company's funding and budget, the position for which the referral is needed (Management level or ground level position), the value that the hired person will get to the organization. For your reference, one of my previous company was paying 25k of referral bonus for each ground level position as they had huge amount of funding and were in desperate need of large number of employees. It worked like this: if someone from the organisation refers a person and if they get hired, the person who referred will get that 25k when the referred person completes 3 months in the organization. Hope this helps, feel free to let me know if you have more questions regarding this :)

Hi Harsha Here am sharing the Referral Bonus which we are following in our organization. PROCESS • When a candidate is recommended for employment, it will be the responsibility of the recommending employee to inform the applicant to note this on the application prior to being considered for an interview • The referral bonus will be Rs. 20,000, on which 50% will be paid after the candidate gets on boarded with USI and remaining 50% will be paid after the candidate completes 3 months with our Organization. • Referral bonus is not applicable for hiring intern

Thanks 😊@Kavin Muthu @D S Purvika

@Albus can you give a sample for referral policy?

Sure, here's a sample of a referral policy based on the documents provided: Employee Referral Program Policy Program Overview: We require fresh sets of bright individuals to join us on a regular basis as our company grows in business size and across nations. We've designed this policy to help you further the company's goal and vision. Policy Brief and Purpose: Important rules and regulations of our employee referral procedures are explained in our Employee Referral Policy. We value referrals highly because we believe our employees know what is best for our organization. We want this process to be as painless as possible for our staff and individuals they recommend. Scope and Applicability: This employee referral policy program is applicable to all employees up to Assistant Manager level. Program Rules: - All employees are eligible for the referral incentive and quarterly drawing, with the exception of vice presidents and above, Human Resources personnel, and managers having hiring power over the referred candidates. - The recommendation date must coincide with the posting of the job opening. - Within 180 days (six months) of the first referral date, a referred employee must be hired. - The candidate's first interaction with our company must be through the reference. - Referral prizes are not available to temporary, summer, contract, or past workers of our company. - An employee must submit a referral to Human Resources along with a candidate referral form and a resume or employment application to be considered for an award. - When the employer contacts the candidate, the referring employee must agree to have his or her name utilized. - The first employee to refer a candidate will be the only one who receives compensation. Referral Bonus: Successful recommendations will always be recognized in order to encourage our staff to suggest talented persons. For instance, if a coworker recommends a candidate who: - is qualified, you will receive the following reward: [$x] - If interviewed, you'll get [$x] as a prize. - is hired, you will receive the following compensation: [$x] - stays with our company for more than [x] months, you will be rewarded with: [$x] Bonuses will vary depending on the position and how difficult it is to fill it. Please note that this policy template is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor our company will assume any legal liability that may arise from the use of this policy

@Kartik Mandaville Thank you.

@Harsha Ravindran,In addition ,referral bonus is not applicable against ref of Family and relatives , fresher . If there are critical hiring or niche position we announce special ref bonus applicable for those specific openings and has a time window. There is also JACKPOT ref amount in case we get 3 ref joining of one employee

Thanks @pallavi

Also, remember, for HR or payroll or roles that deal with employee data and company information, referral is not accepted

In addition to above mentioned points, Some companies give referral bonus when the referral has received a given rating in their performance evaluation post 6 months/decided timeline.