Before I suggest a solution, let me tell you why one time referral bonuses are a waste of money:
But we all need help in recruiting talent for our teams, and the people operations team needs assistance helping new employees settle in and do well, etc. So here is a better way:
Institute a substantial employee referral dividend. It takes about $10K-$15K in resources and cash to replace each employee who leaves the company. On top of that, since often a new hire may get higher compensation, you may need to hire one full-timer and one part-timer to replace the lost output, etc. So why not increase the stakes and give a $5K annual bonus per employee referred for as long as both the referrer and the referee are employed with the company. The bonus should be paid each year on the anniversary date that the referred employee joined the company. Why such a large bonus? Because $20K over a 4 year tenure is a small price to pay. I estimate you will get a 3X ROI on that money.
Why 3X ROI?
What are the risks?
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