Giving Away a Brand New Car - a Look at the Return On Investment for an Innovative Employee Referral Program

Abstract

Employers implement creative employee referral programs to differentiate themselves from competitors and attract and retain new employees in tight labor markets. This study evaluates the effectiveness of an innovative employee referral program through which a company provides one employee every year a two year lease to a brand new car for referring what the employer has designated a hard to recruit employee. The study looks at the return on investment of the program exploring the costs versus the benefit. It also evaluates the effect on turnover and compares the employer to the industry average while comparing the program to other creative employee referral programs. The poster will highlight a history of the program and provide visual representations of the study's findings.