These are but a few of the ideas, both old and new, being put into action to try to stem the tide of increasing turnover in a very hot job market. We will revisit this subject often to see how effective these efforts have been. Virtually every company with significant hiring needs has instituted some kind of employee referral program in an attempt to generate more applicant flow in a tight labor market. An emerging trend in the area is the cash award made to anyone, including non-employees, who refers a candidate who ultimately is hired. Not all employee referral programs give cash as the award.
Some companies give gift certificates, electronic gadgetry, or weekends for two at a posh hotel.
Others offer referring employees a chance at a drawing for a bigger prize, such as a cruise, a big screen TV, or even a car. The key to success with these programs is high visibility and communication to gain as much input and involvement from the employee population as possible. And again, the size of the award has little effect upon the results. It is the quality and frequency of communication that counts. With the economy booming along for the last several years, one would think that we would have seen the end of the massive layoffs of the merger-mania years.