Successful healthcare organizations know that one of the best ways to build a pipeline of strong candidates is to offer a referral program.  That’s because current employees are excellent sources for recruiting new physicians, nurses, therapists and other healthcare professionals.

Since employees have a firsthand understanding of the mission, people and culture of the healthcare organization, they are likely to refer candidates who are a “good fit” for a vacant position.  That can lead to longer tenure with the organization and decrease overall turnover, producing cost savings as well as improved performance.

When developing a referral program, it’s important to consider how best to reward employees.  On the tangible side, it may make sense to offer a financial incentive such as a $100 or $200 bonus for referring a new hire. But cash isn’t the only type of incentive.  You could offer an extra vacation day, a gift certificate from a local department store (perhaps purchased at a discount) or a “goodies” basket delivered to the employee’s work location.

In fact, the value of the reward may be less important than providing some type of recognition for the referring employee. For instance, you might thank the employee in a monthly newsletter or email message.  That’s a nice way to honor the employee, while reminding other people about the organization’s reward program.  In general, there’s no need to mention the name of the new hire - the focus should be on the current employee.

In today’s competitive job market, it makes good sense to offer an employee referral program.  It’s a small investment that can make a big difference in future performance!