Referral program

A referral program is a hiring strategy where you encourage current employees (or sometimes even customers) to refer qualified candidates for open roles at your business.

Homebase Team

Min Read

What is a referral program?

A referral program is a hiring strategy where you encourage current employees (or sometimes even customers) to refer qualified candidates for open roles at your business. In most cases, it includes a reward or incentive when a referred candidate is hired and stays for a set period of time.

For small businesses, referral programs are a low-cost, high-impact way to find great people, especially when you don’t have a big recruiting budget. Your best employees often know others who are just as dependable, and tapping into their networks can help you fill positions faster. To make hiring easier from the first application to onboarding, sign up for Homebase to post jobs, manage applicants, and welcome new hires in one place.

Why referral programs work

There’s a reason so many businesses both big and small rely on referrals:

Faster hiring – Referrals tend to move through the hiring funnel more quickly
Higher quality candidates – Employees don’t refer just anyone—they know your culture and what’s expected
Lower recruiting costs – You save money on ads and job boards
Better retention – Referred hires often stay longer because they already have a connection to the team

In other words, referral programs help you build a stronger, more reliable workforce.

What to include in an employee referral program

A good referral program is simple, straightforward, and motivating. Here’s what you should include:

Who can participate – Most programs include current employees, but some open it up to former staff or customers
What roles are eligible – You might limit referrals to specific positions or open it to all vacancies
The reward – Offer a cash bonus, gift card, or even extra time off when a referral is hired and stays for 30, 60, or 90 days
How to refer – Provide a form, link, or designated contact for submissions
Follow-up process – Let referrers know when their candidate is hired (or not), and when they can expect their reward

Transparency and timely communication are key to keeping people engaged.

Tips for making your referral program a success

Promote it regularly – Don’t just launch it and forget it; include it in meetings, newsletters, or shift huddles
Make it easy to refer – The fewer steps, the better
Celebrate successful referrals – Public recognition encourages others to participate
Track results – Keep an eye on how many referrals you get and how long those hires stay

And don’t forget to thank employees who participate, even if their referral isn’t hired.

Referral programs for customer hiring

Some small businesses also offer referral bonuses to customers or community members who refer someone who gets hired. This is especially helpful in industries where hiring is tough, like restaurants, home services, or retail.

Post about it on social media or your website
Offer a small incentive like a gift card or discount
Set clear terms and reward structure

Just make sure to comply with local hiring and labor laws when opening your referral program to the public.

How Homebase helps with hiring and referrals

Homebase helps small businesses simplify every part of the hiring process, including managing referrals. With our platform, you can:

Post open roles and share them easily with employees and your network
Track applicants and referrals in one place
Customize your application process and screening questions
Onboard new hires with forms, checklists, and team messaging

Explore Homebase’s hiring and onboarding tools to make your referral program easy to manage and make your hiring process faster, friendlier, and more efficient.

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