Why Outsourced HR Should Be Your First Phone Call

Why Outsourced HR Should Be Your First Phone Call

As your business grows, so too grow the challenges and headaches you face. You may have initially run everything on your own or in a small team while trying to get the business off the ground, you have now begun to hire employees to take your vision to the next level. Where you may have once personally worn several hats – sales, marketing, and customer service – you’ve now had to hand off those duties so you can focus on strategy and growth.

Yet as an employer, it’s those staffing issues that can sometimes leave you wanting to tear your hair out. Hiring is a complex task, and not every dream candidate will turn out to be the right fit for your organization. Even the best employees will occasionally run into issues and conflicts that you may not know how to resolve. As your team grows it will be important to have systems, policies and procedures in place to help deal with difficult situations, and even prevent them from arising where possible.

Having an outsourced HR department is your best first line of defense. The term ‘HR business partner’ seems like it might be exclusive to the corporate world, but it paints a great picture – HR at its best should function as your business partner. Our primary goal is to protect your business, and our knowledge of people and of your workplace helps us put systems in place to make that happen. 

woman in black blazer sitting on black office chair

As outsourced HR experts, our business is people, and our fractional approach to consulting allows us to focus on your people. We understand employment law, but we also understand how it connects with behaviour, psychology, and even attitudes and beliefs to determine how the workplace should function best. We know what best practices look like in a situation, and the small, incremental steps that it can take to reach them.

HR professionals work to protect your workplace in two key ways. The first is from a lens of prevention. The last thing you want as an overworked business owner is to spend countless hours drafting a policy manual, which will then require further investments of time for tweaks and upgrades as law and best practices change. Leave that to us. We regularly draft the policies and procedures that tell your employees how you want your business to operate. We also understand employment law, and will make sure that your policies are compliant with crucial legal requirements, which can help defend you against any potential legal claims.


person stands on brown pathway

We also resolve difficult situations. When you need to have a difficult conversation with an employee you may not know how to proceed, but we do. We can take part in these conversations and guide them towards a resolution before a problem persists. When performance issues arise, we step in to help with performance management, and can lay out the framework for clear expectations of how to turn a bad situation around wherever possible.

When a situation cannot be resolved, we are the business partners who can guide you through how a termination should take place. Terminating employees is never enjoyable, and if done badly can even lead to employees making legal claims for bad faith. We walk you through every small step, from preparing the documentation and the terminating letter to how to notify the employee and what next steps should be taken afterwards. We recognize that employment lawyers may sometimes be required (especially if the employee responds with a lawyer’s letter or claim), and can help bring an employment lawyer into the picture where they are needed to handle any legal disputes. 

We tell our clients that there are ‘no bad questions,’ and we mean it. Our business model puts us on retainer, so that you can pick up the phone at any given time without having to worry about us billing by the minute. In fact you should never be afraid to call us – if you’re questioning how to handle a given situation it’s always better to ask then to make an error trying it on your own. 

We recognize as HR professionals that the legal landscape is always changing. Even when we think that we may have ‘heard it all before,’ new situations will always arise that require a fresh perspective, or a unique approach. Throughout the pandemic, for example, we helped our clients quickly pivot into effective work-from-home people management, even when they had no previous policy infrastructure for that setup. We are up to speed on some of the latest issues (see our recent resources on vaccine policies and return-to-office planning) and are able to provide a customized perspective tailored specifically to your organization.

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Our job as outsourced HR professionals is to protect your business. We do this by offering solutions that save you as an employer time, money, and headaches. Hiring us as your business partner means that we can take some of those headaches off your plate, and provide custom-tailored advice for your business that won’t break your budget. 

Looking to learn more? Book a time below to connect with a member of our team.


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5 Important Ideas: Vaccines in the Workplace

5 Important Ideas: Vaccines in the Workplace

18 months ago, it might have been reasonable to think that the COVID-19 pandemic would last a few weeks (or months at most!). Also, we might have hoped that by staying indoors we would be able to get back to our normal lives shortly thereafter. 

We’ve come a long way and our definition of ‘normal’ has certainly changed. We now see that COVID-19 will impact the business decisions we make well into 2022 – and for who knows how long beyond that. Right now, companies of all sizes are wrestling with how to safely return their employees to the workplace – or whether to do so at all. 

There are no easy answers. News about the virus keeps changing, and employers – from multinational corporations to the federal and provincial governments – have rolled out policies that, while appearing firm today, may need an update tomorrow. 

Given all the change and uncertainty, our outsourced HR professionals compiled 5 key ideas that will help you navigate the uncharted terrain ahead.

covid vaccine and syringe
  1. Survey Your Team

We recently looked at the power of employee surveys as a tool to better understanding your team. They can be especially beneficial here, when many of your employees will be understandably nervous or concerned by a barrage of sometimes-conflicting news reports. Some employees may be ready to get out into the world and back into the office, while others will have understandable reservations. 

Survey your team members, and do so anonymously. Ask them how they feel, and where their comfort level is with returning to the workplace on either a full time or hybrid basis. Those answers should inform how you draft your policies and your return to work schedule. If a large percentage of your team is ready to return, start looking at a gradual return based on the advice of public health authorities in your area. If your employees are uniformly not ready to go back, you will need to look at options that jointly address their comfort and your business needs.

“There are certainly softer and more compassionate approaches available, such as permanent work from home or rigourous testing policies.”


woman standing up in front of colleagues during meeting and showing papers

2. Draft Your Policies Carefully

You’ve likely seen the news about some of the biggest employers instituting ‘mandatory’ vaccination policies. This is often misinterpreted as ‘forced’ vaccination policies, but there are important differences and you may want (or need) to clear the air with your team.

First, any mandatory vaccination policy must take into account the same human rights exemptions as any other workplace policy. The Province of Ontario recently launched firm guidelines as to who would qualify for a medically-based vaccine exemption, and naturally any discrimination for such an exemption is forbidden. Employees may also seek an exemption to such a vaccine policy for religious reasons, which – if granted – would be similarly valid and protected from discrimination.

The other question that will come up in drafting a vaccine policy is what to do with those employees who are unwilling to take the vaccine without a governmentally-validated exemption? Remember that mandatory vaccines do not mean ‘forced’ vaccines; no one can legally hold you down and jab you with a needle. 

Employers are in a tough spot as they decide how to handle their unvaccinated workers. In the extreme, it is true of most employees in Ontario that their employment can be terminated at any time – and for any reason – so long as they are paid severance. That said, there are certainly softer and more compassionate approaches available, such as permanent work from home setups or rigourous testing policies. This also allows flexibility for grey areas and cases not covered by our Human Rights Code but that could still merit accommodation. 

woman in collared shirt

3. Rights to Privacy

As an employer, the best advice for talking about vaccinations while in the workplace is to be very careful. A person’s vaccination status is private medical information, and employers have a duty not to disclose that to others. So even though it’s become a popular topic of conversation within most of our families and social circles, discussing vaccination status in a workplace can accidentally reveal information about an individual that by all rights should remain private.

Keep your employees’ vaccination status as private and discreet as possible, and strongly encourage them to do the same. Workplaces that have been promoting in advertisements that their teams are fully vaccinated may be well-intentioned, but unless they’ve received permission, they are unknowingly violating their employees’ right to privacy. Do not encourage discussions around sharing everyone’s vaccination status, and remind colleagues why doing so can be problematic. 

crop woman in mask passing through turnstile in metro

4. Vaccine Records are not the New Employee Swipe Card

Just as there is no truly mandatory vaccination policy, there is no mandatory unveiling of vaccination status by requiring a record of vaccination to enter the workplace. Ontario does have upcoming regulations for entering some spaces on September 22, 2021, but an individual’s medical information is still private – and they can always opt not to enter. 

As a matter of policy, we recommend that employees should not be made to show their vaccine record to enter the workplace through a check-point. There is just too much potential for revealing private information (however inadvertent) and even discrimination. There are other ways to verify entrance eligibility that will reduce risk and observe the right to privacy.

pile of white and black boxes

5. Accommodations are not One-Size-Fits-All

Think about how you plan to accommodate employees that are exempt from vaccinations. Will they be allowed to work from home permanently, or will they be allowed back into the workplace but subjected to regular testing? Will accommodations be available to those who are unwilling to take the shot, or will you be terminating those employees? Remember that the former group cannot be terminated for their exemption, but the latter group can while following regular applicable laws.

Working from home may be a reasonable accommodation in some situations, but moving some employees to a permanent work from home while making others return full-time may appear arbitrary to employees and can quickly breed resentment if not handled carefully. A carefully-crafted accommodation policy can help avoid these pitfalls, and a strategic review of the business will help determine exactly which employees are needed physically in the office and when. 

 

If this sounds complicated, that’s because it is! We have never dealt with such a widespread pandemic in this age of technology, and advice can change frequently under new legislation and changes in public health directives. 

Whatever happens though, our team is here to help. Our outsourced HR consultants serve as your fractional HR team, and can help guide you through this difficult terrain. Take a look at our calendar below to schedule time for an initial consultation. 


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The 5 Keys to a Best-in-Class Interview Process

The 5 Keys to a Best-in-Class Interview Process

We recently did a deep dive on why it’s so important to hire for values over skills. But if you don’t have a great interview process to begin with, the candidates you want – the ones that share your values – are not going to accept your offers.

If only you could build a process that finds you the right people and has them scrambling to say yes…

Well, read on!

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Photo by Andrea Piacquadio on Pexels.com
  1. Transparency from the Start

Your candidates should know a fair bit about your process even before they apply. Why? It’s a natural filter to save your time and theirs. If your process takes 3 months and they need a start before then, no amount of interviews is going to make it a good fit. Or you may do rigorous reference checks, and candidates might need time to line those up. Think of this as a professional kindness.

Having a standardized process also shows that you’re limiting some biases. The opposite – a subjective flow – lets the interviewer decide who the candidate should speak to next, or possibly even to make the hiring decision right away. Stick to the process, and being transparent up front means you’re committed.

At Castle HR, we post our interview process directly as part of our job description. Candidates know exactly with whom they will be meeting at each stage so that they can do their homework. We also include a short description of each step and an estimate of the overall timeline.

“Scoring for values is the difference between a grocery list that says ‘get something for dinner’ and one that has an itemized list of ingredients for a four-course meal.”


flat lay photography of vegetable salad on plate

2. Value-Based Scorecards

This sounds simple, right? And using a scorecard should be – that’s the point. But how you create the scorecard is critical.

Scoring for your company’s values is the difference between a grocery list that says “get something for dinner” and one that has an itemized list of ingredients (with measurements!) for a four-course meal.

Interview scorecards – designed well – can also be a huge asset in removing bias. How you word your questions and how you teach your team to evaluate candidate responses cannot be neglected.

crop illustrator coloring apparel sketch at table

3. The “Show, Don’t Tell” Approach

Behavioural-style interview questions (“tell me about a time when you…”) are quickly moving out of fashion. They not only put candidates on the spot, they leave room for errors in memory and deception (no matter how well-intentioned).

Instead, design your process to have the candidate show you what they can do. The key here is to not ask for too much. They’re not working for free, after all.

Set a task that lets them show off their chops, and also allows for some creativity. This is a great opportunity to align the conversation around your values, too; a fun-loving team might put a goofy spin on the task so you can’t help but laugh together. Does the person take it way too seriously? Maybe they aren’t the best fit.

multiethnic colleagues discussing contract on paper

4. Empower Your People

This could arguably be titled, “Let decisions happen.” Don’t overcomplicate by requiring sign off from every executive unless the role really calls for that. Decide in advance who’s making the decision, and then let them.

A surefire way to lose a promising candidate is to leave them waiting, and waiting, and waiting. If the person who would decide is going to be on vacation, you should be able to know that in advance and deputize someone else.

This not only makes for a more efficient process that doesn’t trip and stumble over preventable details, it shows candidates that you’re serious about them! They’ll also see that you’re a company that trusts the people they hire. You want them thinking, “the CEO was away, but clearly has a lot of faith in their team – I want to be a part of that!”

brown and clear hour glass

5. Trust in the Process

When you build a good process it will find you quality candidates.

Earlier this year we released a video about eliminating ‘interview insecurity,’ where you think you’ve found the perfect candidate, but you just want to meet 5 more to see how they measure up.

Then suddenly that perfect candidate gets snatched up by your competition because they didn’t hesitate! This paralysis-by-analysis is a great way to lose skilled talent.

 

It’s time to sit back and let your interview process do its thing. That’s why you put so much effort into it, right?


Our fractional HR team is here to help guide you in creating a stellar interview process. Contact us today to learn how we can help.

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4 Steps to Harness the Power of Employee Surveys

4 Steps to Harness the Power of Employee Surveys

Make no mistake – your employees are talking. They’re speaking with each other after hours, behind closed doors, on private message threads, and during weekend hangouts. They’re sharing with each other their individual perspective on some things your business is doing right, and everything that they think your business is doing wrong.

As an employer, wouldn’t it be nice to know what they’re saying? You want to know what’s working, and what could be better. Unhappy employees means lost productivity and spikes in turnover costs. But unless you provide a channel for honest communication direct to your leadership team, they’ll probably just keep talking to each other.

Enter the survey. It’s not a revolutionary tool, but when you do these 4 steps you’ll get great results.

woman wearing teal dress sitting on chair talking to man
Photo by Jopwell on Pexels.com
  1. Understand the Why, the When, and the How

Why: Think of a workplace survey like a doctor’s check-up for your team. While you may not think of going to the doctor if you don’t feel that anything is wrong, you truly never know what is happening beneath the surface. Regular medical check-ups can catch the beginnings of serious problems and allow you to take action before a problem spirals out of control.

The same is true of employee surveys.

Employee surveys are where you can truly get a sense of your employees’ happiness and their level of satisfaction with the company. 

When: Numerous large organizations with thousands of workers routinely run at least an annual survey, wherein employees are questioned about their level of job satisfaction and even their likelihood of recommending the workplace for other applicants. Smaller teams have even more flexibility, and can easily do routine surveys (twice a year, or even quarterly) to gauge employee satisfaction and measure the improvement over each interval. 

How: Employee surveys should always be conducted anonymously. Just as you feel comfortable discussing your private medical concerns with a doctor because you’re assured of their discretion, employees should feel comfortable discussing their concerns about the workplace without fear of public exposure and humiliation. While some of the feedback may be a tough pill to swallow, it’s important that your team has a confidential outlet to voice their honest opinions. 

Employees can often be wary of surveys, and this is mainly for two reasons. The first is the concern about anonymity. Even if you promise confidentiality, there may still be some team members who will worry about being ‘discovered’ and penalized for providing honest feedback. The surprise for most employers is that negative – and even positive – feedback, does not always come from the places that you would expect. The employees who appear to be the most ‘happy-go-lucky’ may be the most comfortable expressing their frustrations anonymously, and the quietest employees may actually be the most satisfied.

“As an employer, the most important thing you can do with a survey is take it seriously. Set an action plan that responds to the feedback received, both positive and negative.”


white paper with note

2. Make an Action Plan and Communicate It

Some employees have given feedback before, only to see nothing come of it. They may have come from a workplace that routinely did a workplace engagement survey, but never actioned any of the concerns employees raised during the process. Without solid action that the team knows about, surveys will quickly lose their power. After all, how many times would you be willing to give your opinion when you know it won’t be counted?

As an employer, the most important thing that you can do with an employee survey is take it seriously. Set an action plan that responds to the feedback received, both positive and negative. Discuss the feedback received with senior leadership, and review what changes and improvements in process and facilities may be required. 

Then, share your plan with the team. This reinforces that they have been heard and that their voices count. It also creates a layer of accountability for leadership to complete the forecasted changes.

Employees will not expect everything to change overnight, and they will be far more receptive to the process when they can see the road ahead.

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3. Start Somewhere. (E.g. “Return to Office“)

If you like the idea of conducting a survey but are unsure where to start, try asking employees about their thoughts on returning to the office. We recently wrote about how to return to the office successfully and offered employers some helpful tips and tricks. Even if you’ve already begun sketching out your plans for a large-scale return, a short anonymous email survey can tell you honestly if your employees are excited, reluctant, or even hesitant about the idea. 

Create some multiple choice questions and short-answer ones, so you can gather quantifiable data and also let your team communicate on their terms. Multiple choice questions will show you some great data slices like what percentage of the time your team would feel comfortable returning to the office, and when. Short-answers will give people the chance to express their ideas more fully, including on topics you could not have predicted.

Data from this survey is instrumental for guiding your return to office strategy. If you envision a full return in the coming weeks and then learn that your employees are still hesitant to be working indoors, you’re effectively setting your team up for an unhappy experience. Instead, make sure employees know that you are listening to their concerns and that you are making best efforts to build in flexibility while maintaining a safe and productive workplace – wherever that may be. 

round silver colored chronograph watch
  1. Set – and stick to! – a Cadence for Surveys

With our clients, we always recommend running employee engagement surveys at least every 6 months. For us, they’re as helpful as a doctor taking your temperature or blood pressure. Quantifiable data points over time show us trends in progress and opportunities alike. 

The combination of a regular schedule and visible results empower employees to open up, and often they report emerging issues that can be addressed before they become something bigger.

This is the power of the survey.


Our team of fractional HR professionals routinely helps our clients run surveys effectively, and develop a strategy for how to implement the resulting feedback. As outsourced HR, our arm’s length approach allows us to really look inward, and help you assess what may need changing, and when those changes should be a priority. We love nothing more than seeing employee satisfaction scores climb year over year, since at the end of the day we’re only as happy as our clients, and they are only as happy as their team members. Contact us today to set up a consultation and to learn more about how we can help.

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How to Successfully Return Your Team to the Office

How to Successfully Return Your Team to the Office

If you’re an owner or manager in your business, you may have been back to the office at least a few times (or even regularly) over the past 16 months. Some owners dropped in weekly just to check mail and water the plants. Others headed in more regularly to escape the distractions of working from home, or simply because they felt they needed to make use of the space they were committed to renting.

Most other team members though have likely been working from home since March of last year, and many have decidedly mixed feelings about going back to the office now that vaccination rates are high. Some employees have expressed concerns about health and safety, and how to handle unvaccinated coworkers. Others are dreading the idea of returning to a regular commute, and the rigors that come with an inflexible daytime schedule. 

Several of our clients have made the decision during the pandemic to permanently surrender their office space, and have transitioned to a permanently remote-work model. Others though are grappling with how to plan a safe and effective return to office strategy. Here are a few tips and tricks to make your difficult planning process a little bit smoother.

green leafed plants
Photo by Marc Mueller on Pexels.com

Listen to your team’s concerns

Because return to office planning has been difficult to pin down due to the changing public guidelines, your team members are likely confused, scared, and generally on edge. The surest way to aggravate a difficult situation is to thrust the decision upon them without any consultation or input.

Instead, see if you can make the planning a collaborative process within your team. You may still dream of a full-scale return, but that will likely have to happen in slow increments in order to be successful. Survey your team members, have private conversations, and ask them directly what it would take to make them comfortable enough to return to the office. You may not be able to incorporate every idea put forth, but you’ll likely hear some excellent ones that will only serve to improve the working environment as you work your way back.

Also, one final tip on that note – don’t call it ‘return to work.’ Return to work is a legal term for those coming back from a layoff, and for any team members who were formally laid off then it would actually be a return to work. Most of your staff though have likely been working from home almost the entire pandemic while simultaneously juggling health and family responsibilities, so the phrase ‘return to work’ suggests that they’ve been on one long extended vacation. Nothing could be further from the truth.

“Employees will catch on quickly if they feel that a ‘collaborative process’ is just paying lip service. Ignoring suggestions outright will only harm office morale…”


man in red polo shirt thought a good idea

Implement those good suggestions

Listening to your team is helpful, but employees will catch on quickly if they feel that a ‘collaborative process’ is just paying lip service. Ignoring those employee suggestions outright will only harm office morale, and lead to employees believing that their concerns aren’t being taken seriously.

Employees likely have good reasons for wanting to implement some sort of hybrid or flexible office/home model. While employers are required to accommodate employees who have significant child or elder care obligations with no other reasonable workaround, many employees have likely amended their living situations during the pandemic in order to better balance work and home life in general. Some have even taken advantage of the hot real estate market and moved further out of the city since they’ve begun working exclusively from home.

See how many of the suggestions are actually feasible to implement, even if they’re better suited for a later date. Your employees will be more inclined to stick with a company that they know is sticking with them.

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Focus on Health and Safety First

Even if all COVID-19 mandated protocols are suddenly lifted, it would be foolhardy to rush headfirst back into full occupancy. The initial mandated maximums will likely be at a 50% of office capacity, and even those should be heeded with caution.

Take the extra time to plan out your physical space. Make sure that employees can sufficiently distance from each other, and that contact is minimized unless necessary. Rules may be amended to allow employees to eat at their desks so that they are sufficiently distanced, or even recommend off site dining until conditions improve. Mask mandates should still be encouraged to avoid unnecessary transmission. Lastly, confirm with property management that the premises will be cleaned thoroughly on a regular basis to help allay employee’s fears.  

cheerful asian girl sitting under mother practicing yoga at home

Stay flexible!

 We all learned lessons over the past year and a half about workplace flexibility. Practically overnight we improvised home offices, shuffled our schedules, upended our social lives to move entirely virtually, and learned that nature has crazy ways of breaking our rigid plans.

That flexibility will be just as important in returning to an office. Scientists are already speaking about a likely fourth wave of infections this Fall, even though it’s predicted to be smaller and less catastrophic given our high vaccination rates. Even still, infections will continue, so flexibility means planning around the fact that employees may be off for several days because they or a relative have contracted the virus. Flexibility also means that provincial guidelines may change, and capacity regulations may increase or decrease accordingly. It is well worth having several plans in place in order to account for a variety of scenarios.

Lastly, when it comes to the vaccine, privacy is paramount.

Canada has benefitted from great adherence, but the reality is that not everyone will receive the COVID-19 vaccine. Some have religious objections, others are medically inadmissible, and others may be refusing for personal reasons. 

The law is still being ironed out when it comes to this specific vaccine, and it may take a few years still for cases to move through the legal system. Generally speaking though, employers should tread cautiously when it comes to implementing vaccine policies that would attempt to either mandate vaccines, or punish those who don’t receive them. Exceptions must always be made on human rights grounds, including disability and religious freedoms, but there are greater concerns as well. Courts have generally ruled in similar situations that such policies are only acceptable in safety-sensitive workplaces, and an office environment will likely not meet that threshold. 

Instead, keep doing what you’ve done so far – encourage employees to get vaccinated, and offer them ample opportunity to do so. If an employee is unable to receive the vaccine and concerned about working from an office, examine if working from home or some other protections may be reasonably available. Employers are required to accommodate employees on the grounds of disability and must do so discreetly, so consult with one of our team members if you need any guidance on making these arrangements.

Return to office planning isn’t an easy task, but we are here and ready to help. Our fractional HR team is available to serve as your HR professionals. We can offer guidance on how to best re-integrate your team into the office environment while focusing on keeping everyone safe and secure. Remember, in-person collaboration may be beneficial to your company, but it shouldn’t come at the expense of health, safety, or team morale. Contact us today to set up a consultation.


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4 Really Clever Employee Referral Programs

4 Really Clever Employee Referral Programs

How have you found your top talent? Have you gone the traditional job board route, and sifted through countless resumes from a handful of job sites before finding that diamond in the rough? Were you introduced to a friend of a friend of a friend at a time when you weren’t looking to hire, only to realize that they would be a perfect fit for your team? Hiring the right individuals while in growth mode is always challenging, but as your team continues to scale you may want to look at a different approach.

Employee referral programs are not a new invention. Large organizations have for years offered their employees some sort of nominal employee bonus for helping to refer a friend who then lands the job. While the approach is a cost saving measure – LinkedIn for example found that each referral saved them roughly $7,500 per hire – the cash does not act as a significant incentive. Instead, several of our colleagues in the tech space have gotten creative with their employee referral programs, and the results have been as stellar as the new hires that they’ve found.

[Some] companies have found new methods of offering monetary rewards, such as a diversity bonus … or a tiered bonus for each successful stage of the hiring process.

ethnic female psychotherapist listening to black clients explanation
Photo by Alex Green on Pexels.com

4 Really Clever Employee Referral Programs

InMobi

The Indian multinational mobile advertising company sought to design a rewards system that worked for their employees no matter where they were in the world. They displayed a new bicycle, a universal method of transportation, at the entrance of each of their offices to keep employees incentivized. For successful referrals, employees were given a choice. They could have a new bicycle, or a trip to Bali, Indonesia. Bali may be more enticing for those of us in colder climates, but employees in warmer countries may have certainly appreciated the bike.

Fiverr Team

Fiverr

The Israel-based online marketplace for freelancers turned their employee referral program into a game. Employees were allowed to collect points for each referral, and cash in those points on a quarterly and yearly basis for rewards or prizes of their choosing. If an employee was seeking a specific reward, the company could then help them achieve it. It effectively turned the company’s employee referral program into a continuous indoor arcade. 

4 Really Clever Employee Referral Programs

Segment

San Francisco’s consumer data platform company is still growing, but they have done so partially by using their referral system as an internal competition system. They’ve created a leaderboard, and the person to successfully refer the most candidates winds up naturally on top of the leaderboard. The company states that they are planning on introducing other incentives soon, but even without any monetary rewards Segment has found 40% of their newest hires through this system.

Salesforce Team

Salesforce

The tech giant offers its employees a traditional monetary rewards system for successful referrals, but they have added an extra element. Instead of receiving cold applications where it can be difficult to get a feel for a candidate on paper, the company has introduced Recruitment Happy Hours. Employees can bring potential candidates into the office, where they can meet directly with hiring managers in a less formal setting. Not only does this put both parties more at ease, but it offers hiring managers an early opportunity to see how a potential employee engages with their company culture. 


As more and more companies in the digital space look for unique solutions to age-old problems, they continue to invent new hiring solutions as well. Other companies have found new methods of offering monetary rewards, such as an additional diversity bonus for candidates hired from diverse backgrounds, or a tiered bonus for each successful stage of the hiring process. This way employees do not need to feel like referring a candidate into a seemingly large talent pool is an ‘all or nothing’ approach.

Referral bonus programs can be a huge credit to your organization, and can make you a more attractive workplace for future candidates. A recent survey by Career Builder showed that these programs have the strongest return on investment for employers, which is no surprise. Yet no two programs are identical, and no single structure has a one-size-fits-all approach. When designing your referral program, here are a couple tips to keep in mind:

  • Ask questions. Consider surveying your employees to see what may be of value to them, and consider your corporate culture as well. If your team is generally incentivized by earnings, then a monetary reward may be fruitful. Otherwise, see where else their priorities lie.
  • Set your budget. The average successful employee referral bonus is about $2,500, but some companies can go even 10 times that amount for the right hire. Find an amount, whether cash or some other reward of equal value which will motivate your team to support growth while still making the system a cost-effective endeavour. 
  • Be clear about your expectations. Your team needs to clearly understand your expectations for an ideal candidate if they have any hope of successfully finding that person. You would not hire a recruiter and then give them a vague notion of who you were looking for – do not treat your employees that way either.
  • Make the program interactive. A rewards program needs to be user-friendly in order for it to remain successful. Make your employees aware of exactly how the program works, and what needs to happen for them to qualify for a reward. Designate a person to answer any questions that they may have about the position so that they can narrow down their search. Also, provide feedback throughout the referral process so that employees can have an even clearer idea of your expectations in a candidate.
  • Celebrate the wins! Remember InMobi keeping a bicycle at the front of the office as a visible reminder, or Segment creating a very public leaderboard? A successful candidate referred by an employee is a win all-around. The business benefits from a great hire, and the employee is engaged by their resulting reward. Celebrate these wins publicly – it shows your team just how much you appreciate their involvement in your overall growth. 

We work regularly with our clients to design employee referral systems that align with their corporate culture and motivate their existing employees to take part. Our fractional HR consultants learn your corporate culture, and work with you to design a program that will incentivize employees without breaking your budget. Contact us today to learn more about our services, and how we can find unique and innovative ways to help your team grow.

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