Employee Referral Programs

Pro: Top performers should bring in other top performers because birds of a feather flock together.
Con: Not everyone is a top performer. Top performers may be unwilling to refer others because it would reflect poorly on them to bring in a poor performer. Poor performers will refer a lot of people just for a little extra money or to surround themselves with their friends at work.
Strategy: Ensure that employees know that anyone who gets referred is a reflection of the employee who made the referral. Actively request referrals from your top performers, especially when there is a specific opening you want them to help you fill. You may want to provide some meaningful financial incentive if a referred candidate is chosen and stays with the company for more than 90 days. If that same new hire is rated as a top performer at the end of the year you should give the referring employee an additional bonus.