An employee referral bonus is a structured incentive program designed to reward employees for referring candidates who are ultimately hired by the company. Employee referral bonus examples often come in the form of cash bonuses, gift cards, or even additional paid time off. The goal is to tap into the networks of existing employees to find strong candidates who may be a good fit for the organization.

These bonuses are usually tiered based on how difficult the position is to fill. For example, roles that require technical expertise or are considered hard-to-fill typically offer higher rewards. This tiered approach not only encourages more referrals but also aligns the incentive with the company’s hiring priorities. Clear communication about the program is key, including details on who is eligible to participate and how the payout process works.

Payouts are often structured in stages—part of the bonus is given after the referred candidate is hired, and the rest is paid after the new hire meets a retention milestone, such as staying for 90 days. This structure helps support both recruitment and employee retention goals.