Employee Referral Policy Format

Employee Referral Program Policy Format by FormatWorks

In this blogpost, we will learn about Employee Referral Policy, importance of having this policy and key considerations one should keep in mind while drafting it. Also, we provide free format for employee referral policy to get you started. Alternatively, you can explore our company policies format category as well.


Employee referrals are an effective way to source talented candidates for job openings in an organization. However, to ensure the success of a referral program, organizations need to have an employee referral policy in place. A good policy can help organizations maximize the benefits of employee referrals, minimize conflicts of interest, and maintain fair hiring practices.

Importance of Employee Referral Policy

An employee referral policy sets clear guidelines for employees who wish to refer a candidate for a job opening. It outlines the eligibility criteria for referrals, the process for submitting a referral, and the rewards for successful referrals. By having a clear policy in place, organizations can encourage employee participation, maintain transparency, and ensure fairness in the hiring process.

Key Considerations while Drafting the Policy

Drafting an employee referral policy requires several key considerations. The policy should define the eligibility criteria for referrals, such as the job openings that are eligible for referrals and the qualifications required for the referred candidate. It should also outline the process for submitting a referral, such as the referral form to be used and the deadline for submissions. Additionally, the policy should specify the rewards for successful referrals and any limitations or conditions attached to them.

For example, if your referred candidate is in the organization for 8 months after the date of joining, you will be rewarded $150 per referral. All the referrals are to be submitted to HR via official email ID.

Policy Template File

A policy template file is a word document that organizations can customize to meet their specific needs. It is a useful tool for organizations that do not have a dedicated HR team to create policies from scratch. The template is modifiable to include specific details related to the organization's referral program, such as the eligibility criteria, referral process, and rewards.


An employee referral policy is an essential document for any organization that wants to leverage employee referrals to source talented candidates for job openings. It provides clear guidelines for employees and helps ensure fairness and transparency in the hiring process. By considering the key elements of a referral policy and using a policy template file, organizations can create an effective policy that meets their unique needs.

Disclaimer: This policy template is meant to provide general guidelines and should be used as a reference. It may not take into account all relevant local, state or federal laws and is not a legal document. Neither the author nor FormatWorks Inc. will assume any legal liability that may arise from the use of this policy.

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April 8, 2023

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