Employee referral bonus a new trend
Employee referral bonus is given to staff by most of the IT firms.
HYDERABAD: While hiring is the biggest challenge faced by IT companies, they are depending on personal network to identify people who may be fit in the vacant positions of the company.
MNCs, including Cap Gemini, Wells Fargo, Deloitte, Google, Facebook, Microsoft etc are heavily incentivising existing employees to find new recruits by giving away monetary benefits. For a successful referral, based on the position and experience of the candidate, companies are paying between '15,000 to '50,000 called as referral bonus. To foster diversity in hiring, if the referred employee is a woman, additional sum is being paid.
According to Trivikram Potluri, director-HR, OSI Consulting, “Often employees tend to understand the company culture better than recruitment agencies. When they refer someone to the company, they will be able to judge precisely if they are suitable or not. The chances of longevity are high for people who come through the employee referral, especially because they are working with likeminded folks”.
“Hiring has become more focused these days, unlike the previous years, where it was all about headcount in the company,” Potluri added.
Additionally, this kind of referral process also adds savings for the company. Companies tend to end up paying more to get a candidate through the placement agency. Incentivising staff will not only boost their morale but also speak about the company’s culture.
According to software employee M. Ram Mohan, working with an MNC, he referred quite a few friends of which four got hired. “I got Rs 25,000 for each successful referral. However, when you are referring people, even your credibility is at stake,” he said.
However, process of employee referral doesn’t ensure that the candidate will get the job. They have to undergo the entire interview process like any other candidate. In case of freshers, there may be some relaxation in terms of eligibility criteria.
Additionally, if employees are satisfied, more number of referrals will flow in. If the employees are unhappy, the number of referrals will be very low, which makes the company understand that they need to improve to gain trust of their own people.