Employee referral programs nguyen 10 other

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Employee Referral ProgramsNguyen10Other rewards/considerationsHiring managers and recruiters excluded from referral bonusDeferral option to TMCF.Mandatory for LTI.Offer exceptional bonus for extremely hard-to-fill positions (as needed)25% dollar enhancement for diversity referrals (levels 3-5)25% dollar enhancement for referrals from competitors (approved list)Annual random drawing for 2 air tickets to anywhere in USAnnual AwardAs needed rewardsExceptional bonus for extremely hard-to-fill positions“Early bird” enhancement for hard-to-fill positionsReward for future consideration“Frequent referrer club”Comparing the two models it is evident that the process for the Giant Eagle model isdefinitely better structured however, according to the research on the FCER and my personalexperience with the Giant Eagle program, each were effective in generating not just hires at amuch faster rate, but quality hires as well. After all, the basis of an employee referral program is
Employee Referral ProgramsNguyen11to increase applicant flow, increase the quality of hire, and decrease the amount of turnover.(Reed, 2012)Weaknesses & CorrectionsThere is a great quote noted by one of my previous managers stating that understandingone’s weakness will only help turn that into strength and also provide the ability to avertdownfalls that weakness may bring. With that quote in mind, it is only right and smart to explorethe weaknesses of a referral program. Of course as great as my research has made a referralprogram seem, there are certainly a few problems that can be accompanied by the use of such aprogram. Exploring these weaknesses is essential to the success of an employee referral program.The first weakness I discovered appeared to be one that was common sense butsomething that could easily be missed. According to Raymond Noe, the major downside ofreferrals is that they limit the likelihood of exposing the organization to fresh viewpoints.Peopletend to refer others who are like themselves. (Noe, 2011) With so many organizations fighting tobe innovative and top in the market, it would appear, according to the information that all hirescannot come from just a referral source. On the flipside however, while they may be like mindedindividuals, it may be important to note that their referrals could come from differentorganizations allowing them to bring with them new benefiting idea practices.Another weakness noted from Noe is that sometimes referrals contribute to hiringpractices that are or appear unfair, an example being nepotism, or the hiring of relatives.Employees may resent the hiring and rapid promotion of “the boss’s son” or “the boss’sdaughter” or even the boss’s friend. (Noe, 2011) An article written by Suba Lakshminarasimahanshows a strong correlation between nepotism and a drop in employee morale. He covers that
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Term
Fall
Professor
N/A
Tags
Computer program, employee referral programs, Jonathan Nguyen

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