In a Biotech company of nearly 200 people, I’ve seen a fee referral scheme for different levels of hire. It was mostly used for doctors and sometimes very senior hires with a referral fee of £1,500 - £2,500 for a successful hire. Success was when the new joiner passed probation. Lower seniority roles had lower referral fees, but these weren’t actively promoted as candidates were more easily secured. For entry-level candidates, the referral fee was £500 and up to £1,000 for more experienced hires. This approach was too complex and applied in an ad hoc way, making it too cumbersome. A simpler approach with just two defined tiers may have encouraged more referrals for roles across the company.
But these cash rewards may be too high. Referrals work best when your people believe that they are doing something good for both the company and for the person they are referring. By taking this approach you get a better-quality candidate. If the financial reward is too big, the whole thing becomes too transactional, and referrals become more about the money and less about the “fit”.
I’d encourage looking at non-financial rewards or indirect rewards too. Donating referral fees (in full or part) to a charity or cause is a great way forward. Small gifts at different stages of hiring can be motivating for your people, too. Gifts such as a t-shirt or a coffee voucher when someone they have referred is interviewed and another reward if they are recruited. Small gifts and recognition for actively taking part in the scheme can be a better motivator than hard cash. It can motivate a broader spectrum of people to get involved.
I’ve also seen a leader board being used where the top 5 are given an extra group award at the end of the year for actively contributing. A leader board may not work for smaller companies but perhaps you may want to consider other cumulative awards. Amazon vouchers, coffee shop vouchers or time off rewards can be used regardless of company size, too. And having an element of choice is worth thinking about. Offering a reward that someone doesn’t want is an awkward situation than can be avoided.
Both large and small businesses often give ‘kudos’ rewards including celebrating the kudos winners. Choosing a kudos can be from a set list - chocolate or local taster cards can be popular choices and are easy to set up.
Whatever you do, the rewards should reflect your company culture. The upshot? You are more likely to hire the right people. Their values are also more likely to fit with your company’s values and mission. Engagement will also be higher.
And if I had to start a scheme from scratch? I’d be looking at gift-based rewards that go towards a cause. For example, something like the Ocean Bottle water bottle, where the employee gets something useful, and the money spent goes towards cleaning up plastic from the oceans. Rewards can also include subscriptions or membership to causes the company or employee supports. Clothing lines like Rapanui or Patagonia that promote sustainability would also be high on my list.
For more advice on hiring & designing company values in a Biotech:
If you work for an early-stage Biotech in the UK and need help on designing your company values or hiring in general you can set up an advisory chat with Stephen here
