Luxury Lexicon A definition

Employee referral

A current employee's recommendation of someone for a role, which the employer may reward with a bonus if that person is hired.

An employee referral brings a candidate to an employer’s recruiters through someone who already works there. Under a referral program, the employer may pay the referring employee a bonus. Some schemes pay it, or its second half, only after the new employee completes a trial or probation period, and some exclude anyone with influence on the hiring decision.

A referral accompanies an application rather than replacing it: the referred candidate still goes through recruitment, and the referral has to be recorded. Some schemes ask the employee to tell recruiters before the first interview and count only candidates the employee has spoken with personally, not someone who merely liked their post on social media; others ask the candidate to name the referrer when applying. Agree with your referrer how it will be recorded.

In job listings

When a listing mentions a referral program or referral bonus, it is almost always among the benefits, in boutique and head-office roles alike: once hired, the employee may recommend others. Occasionally a retail listing is open only to candidates referred by employees or their families. In client-facing sales listings, referral can mean something else: a client who introduces a new client. See current listings that mention referral.

References

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