Employee Referral Program Policy
Effective date: [Date] · Owner: [Program owner, Talent Acquisition] · Applies to: [Employee population]
1. Purpose
[Company] hires better and faster when employees introduce people they already know and trust. This program gives every eligible employee a simple way to refer candidates, and it defines how referral rewards are earned, approved, and paid.
2. Who can participate
All [regular full-time and part-time] employees may submit referrals. The following are not eligible to receive a referral reward:
- Members of the Talent Acquisition, Recruiting, and HR teams.
- The hiring manager and anyone else on the interview loop or approval chain for that role.
[Executives at the VP level and above.]- Contractors, temporary workers, interns, and agency recruiters.
People in the groups above are still encouraged to make introductions — they simply do not receive a payout.
3. Which roles are eligible
Referrals are accepted for [all posted external openings] unless a posting is marked as not referral eligible. [Company] may designate hard-to-fill roles as priority roles carrying a higher reward. Internal transfers, rehires, and roles being worked by [a search firm engaged before the referral was submitted] are not eligible.
4. How to submit a referral
Submit every referral through [referral portal link] before the candidate applies. Include the candidate's name, contact information, the role, and a short note on why they would be a fit. A referral is valid only once it is recorded in [system name] — verbal introductions, forwarded résumés, and direct emails to a recruiter do not create a referral record.
5. Candidate eligibility
A referred candidate does not qualify for a reward if the candidate:
- Is a current employee, contractor, or intern at
[Company]. - Applied independently, or was contacted by our recruiting team, within the previous
[6]months. - Is already an active candidate in our applicant tracking system for the same role.
- Was already referred by another employee (see Section 6).
- Is a family or household member of the referring employee, unless approved in advance by
[HR].
6. Duplicate referrals
If two or more employees refer the same candidate, the reward goes to the first valid referral recorded in [system name]. The timestamp on that record is the deciding factor. [Company] does not split rewards between employees.
7. How long a referral stays credited to you
A valid referral remains credited to the referring employee for [12] months from the submission date. If the candidate is hired into any eligible role during that window, the referring employee qualifies for the reward attached to the role actually filled.
8. Reward amounts
| Role category | Reward | Notes |
|---|---|---|
| Standard roles | [$1,000] | Most posted openings |
| Priority roles | [$2,500] | Flagged as priority on the careers site |
[Executive or specialized roles] | [$5,000] | Approved case by case by [HR leader] |
[Company] may run limited-time bonuses on specific roles. Promotional amounts are announced in advance and apply to referrals submitted during the promotional window.
9. When rewards are paid
Rewards are paid through payroll on the first regular pay cycle after the referred hire completes [90] days of continuous employment. To receive a reward, the referring employee must:
- Have submitted the referral through
[system name]before the candidate applied. - Still be employed by
[Company]and in good standing on the payout date. [Not be on a formal performance improvement plan on the payout date.]
Referral rewards are taxable compensation and are subject to standard withholding.
10. Candidate privacy and consent
Share a candidate's information only if they have agreed to be referred. Referred candidates go through the same interview process, the same evaluation criteria, and the same hiring standards as every other applicant. A referral does not guarantee an interview or an offer.
11. Communication employees can expect
The recruiting team confirms receipt of every referral and notifies the referring employee when the referral is under review, is no longer being considered, or is hired. To protect candidate privacy, we do not share interview feedback, compensation details, or the reasons behind a hiring decision.
12. Administration and changes
[Company] administers this program at its discretion and may interpret, modify, suspend, or discontinue it at any time, consistent with applicable law. Changes apply to referrals submitted after the change is announced. This policy is not a contract of employment and does not alter [at-will employment or the terms of your employment agreement].
Questions: [Program owner name, email] · Full program details: [FAQ link]
Replace every highlighted field, then have HR and legal review the final language. The [12]-month ownership window, [90]-day payout, and [6]-month prior-applicant rule are common defaults — adjust them to match your ATS and payroll calendar.