The Monopoly Money Problem

In part 1 of “Why employees don't trust your referral program”, I shared that friction in the referral process is a big problem. Today, let’s talk about incentives.

Most recruitment referral programs in companies today set a referral fee to be paid after a person is hired + some probationary period.? In effect, it can take 6+ months for an employee to be paid for referring great people into our organizations.? Employees think of it as “monopoly money”.? It’s not real.??

In a world where instant gratification is the norm, the “pay way later” mindset of many talent teams is ripe for a rethink.? Here are a few suggestions:

1. Create “Micro-Incentives”.? Reward people for exhibiting the right behavior in your recruiting process.? If a referral gets to an interview stage, that should be rewarded, quickly.? Show your organization that action which leads to progress is seen, valued and rewarded.
2. In order to create Micro-Incentives, reserve 50% of the referral fee for fast rewards.
3. Promote the heck out of the fast rewards system.

If this sounds like a good idea, but you don’t have software to help you manage it, we’re here to help.? Feel free to DM me here, or send us a note at www.bountiful.us.