The Joy of Job Referrals
Published: Mar 10, 2009
Know anyone that works for 3Com? If so, they're probably on their hands and knees begging for your resume. The company has come up with an offbeat incentive to increase employee referrals: it's raffling off three new, adorable, 3Com-blue Volkswagen Beetles. Up until May 1999, employees who recommend new hires are eligible for the lottery. PricewaterhouseCoopers employees stand to win a pair of Rolex watches if they refer candidates hired for director positions (a strategic management position just below partner). Those that already have watches can opt for the cash - between $1500 and $1700.
The concept of providing monetary incentives for referrals was reportedly pioneered in the early 1970s by Madison Avenue advertiser Bernard Hodes. Recruiters say employee referrals have proven to be among the most cost-effective forms of recruiting. The money they spend in bonuses and other gifts is a pittance compared what they pay professional recruiters. So go ahead and schmooze sans guilt.