Employee Referral Bonus Pilot Program Policy
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STATE HUMAN RESOURCES MANUAL Salary Administration Effective: February 15, 2023 Page 1 Employee Referral Bonus Pilot Program Policy Employee Referral Bonus Pilot Program Contents: § 1. Purpose ........................................................................................................................... 1 § 2. Eligibility .......................................................................................................................... 1 § 2.1. Classifications .............................................................................................................. 1 § 2.2. Referrals ...................................................................................................................... 2 § 2.3. Referring Employees ................................................................................................... 2 § 2.4. Referred Candidates .................................................................................................... 3 § 3. Amount and Payment of Referral Bonus.......................................................................... 4 § 3.1. Referral Bonus Amount ................................................................................................ 4 § 3.2. Limitation on Number of Referral Bonuses That Any Employee May Receive.............. 4 § 3.3. Payment ...................................................................................................................... 4 § 4. Responsibilities ............................................................................................................... 5 § 4.1. Agency Responsibility .................................................................................................. 5 § 4.2. Office of State Human Resources Responsibility ......................................................... 6 § 5. How Long This Policy Lasts............................................................................................. 6 § 6. “This is a pilot policy.” STATE HUMAN RESOURCES MANUAL Total Rewards Effective: February 15, 2023 Page 2 Employee Referral Bonus Pilot Program Policy (cont.) Employee Referral Bonus Pilot Program suitable for a referral bonus program. Some factors used in determining if a classification is “hard to fill” shall include agency turnover, vacancy rate, number of positions in the classification, and scarcity of skills. § 2.2. Referrals For eligible classifications, the application for employment shall include a supplemental question for the candidate applying for the position (a “referred candidate”) to identify any current state employee who referred the candidate (a “referring employee”). The referred candidate must name the referring employee (or employees) on their application for employment for the referring employee to be eligible to receive a referral bonus. Referrals can generate a bonus only if they are within an agency and classification approved for this referral bonus program. The employee must be directly responsible for the successful recruitment of an employee in an eligible job which has been identified as being in high demand, hard to fill and critical to the agency’s mission. Referred candidates shall only list state employees who were directly responsible for the candidate choosing to apply for the position. State employees shall not do anything that would cause candidates to list people as referrals who were not directly responsible for the candidate choosing to apply. A referred candidate may list multiple referring employees. If a referred candidate lists more than one referring employee, the bonus is split pro rata between all eligible referring employees. § 2.3. Referring Employees § 2.3(a) Types of Employees Who May Be Eligible Permanent full-time, part-time, time-limited, and probationary state employees may be eligible to receive a referral bonus within given guidelines. Temporary employees are not eligible to receive a referral bonus.
STATE HUMAN RESOURCES MANUAL Salary Administration Effective: February 15, 2023 Page 1 Employee Referral Bonus Pilot Program Policy Employee Referral Bonus Pilot Program Contents: § 1. Purpose ........................................................................................................................... 1 § 2. Eligibility .......................................................................................................................... 1 § 2.1. Classifications .............................................................................................................. 1 § 2.2. Referrals ...................................................................................................................... 2 § 2.3. Referring Employees ................................................................................................... 2 § 2.4. Referred Candidates .................................................................................................... 3 § 3. Amount and Payment of Referral Bonus.......................................................................... 4 § 3.1. Referral Bonus Amount ................................................................................................ 4 § 3.2. Limitation on Number of Referral Bonuses That Any Employee May Receive.............. 4 § 3.3. Payment ...................................................................................................................... 4 § 4. Responsibilities ............................................................................................................... 5 § 4.1. Agency Responsibility .................................................................................................. 5 § 4.2. Office of State Human Resources Responsibility ......................................................... 6 § 5. How Long This Policy Lasts............................................................................................. 6 § 6. “It is intended to be an initial effort to develop a policy on a new topic, with the expectation that the policy will return to the Commission in the future for revisions when lessons are learned.” STATE HUMAN RESOURCES MANUAL Total Rewards Effective: February 15, 2023 Page 2 Employee Referral Bonus Pilot Program Policy (cont.) Employee Referral Bonus Pilot Program suitable for a referral bonus program. Some factors used in determining if a classification is “hard to fill” shall include agency turnover, vacancy rate, number of positions in the classification, and scarcity of skills. § 2.2. Referrals For eligible classifications, the application for employment shall include a supplemental question for the candidate applying for the position (a “referred candidate”) to identify any current state employee who referred the candidate (a “referring employee”). The referred candidate must name the referring employee (or employees) on their application for employment for the referring employee to be eligible to receive a referral bonus. Referrals can generate a bonus only if they are within an agency and classification approved for this referral bonus program. The employee must be directly responsible for the successful recruitment of an employee in an eligible job which has been identified as being in high demand, hard to fill and critical to the agency’s mission. Referred candidates shall only list state employees who were directly responsible for the candidate choosing to apply for the position. State employees shall not do anything that would cause candidates to list people as referrals who were not directly responsible for the candidate choosing to apply. A referred candidate may list multiple referring employees. If a referred candidate lists more than one referring employee, the bonus is split pro rata between all eligible referring employees. § 2.3. Referring Employees § 2.3(a) Types of Employees Who May Be Eligible Permanent full-time, part-time, time-limited, and probationary state employees may be eligible to receive a referral bonus within given guidelines. Temporary employees are not eligible to receive a referral bonus.
Miscellaneous Terms....................................................................................................... 7 § 7. Sources of Authority ........................................................................................................ 7 § 8. History of This Policy ....................................................................................................... 7 NOTE: This is a pilot policy. It is intended to be an initial effort to develop a policy on a new topic, with the expectation that the policy will return to the Commission in the future for revisions when lessons are learned. OSHR anticipates that this policy would return to the Commission for further analysis no later than the second quarter of 2024. § 1. Purpose The purpose of the Employee Referral Bonus Program is to provide an incentive to current state employees to refer potential applicants who are subsequently selected and hired for critical positions that have been determined to be in high demand and hard to fill. ____________________________________________________________________________ § 2. Eligibility § 2.1. Classifications This program is available for both state agencies and University of North Carolina System institutions. (For the sake of simplicity, this policy will refer to both state agencies and university institutions interchangeably as “agencies.”) Under this initial pilot version of this policy, the referral bonus will be available only for certain classifications, at particular agencies, that the Office of State Human Resources — at the request of the agency — deems critical, in high demand and hard to fill, and “A referred candidate may list multiple referring employees.” With one exception, employees who are exempt from the State Human Resources Act may not receive bonuses under this policy or be a referred candidate that causes someone else to receive a bonus. The exception is that although probationary employees are exempt from many provisions of the State Human Resources Act, probationary
§ 2.3(f) Agencies Can Add Additional Eligibility Criteria A referring employee is eligible for a bonus for each referred candidate that is selected that meets the above criteria and any additional criteria established by the agency. § 2.4. Referred Candidates § 2.4(a) Must Be Hired and Remain Employed To generate a bonus, the referred candidate must be hired to an eligible agency and classification approved for this referral bonus program, then stay at that position for no fewer than 90 days. State law requires that hired employees must meet the minimum eligibility requirements for the position and be among the most qualified in the referred applicant pool. “Each agency participating in this program will set the amount of the referral bonus.” Limitation on Number of Referral Bonuses That Any Employee May Receive No referring employee may receive more than five referral bonuses under this policy per fiscal year. (When a bonus is split pro rata because a referred candidate lists more than one referring employee, only the resulting fraction of the bonus counts toward this limit.) § 3.3. Payment A referral bonus payment shall not be considered as compensation in terms of contributions to and determination of benefits for any of the State's retirement system. A
§ 2.3(f) Agencies Can Add Additional Eligibility Criteria A referring employee is eligible for a bonus for each referred candidate that is selected that meets the above criteria and any additional criteria established by the agency. § 2.4. Referred Candidates § 2.4(a) Must Be Hired and Remain Employed To generate a bonus, the referred candidate must be hired to an eligible agency and classification approved for this referral bonus program, then stay at that position for no fewer than 90 days. State law requires that hired employees must meet the minimum eligibility requirements for the position and be among the most qualified in the referred applicant pool. “Referring employees and referred candidates may not agree to share a referral bonus.” Limitation on Number of Referral Bonuses That Any Employee May Receive No referring employee may receive more than five referral bonuses under this policy per fiscal year. (When a bonus is split pro rata because a referred candidate lists more than one referring employee, only the resulting fraction of the bonus counts toward this limit.) § 3.3. Payment A referral bonus payment shall not be considered as compensation in terms of contributions to and determination of benefits for any of the State's retirement system. A
§ 2.3(f) Agencies Can Add Additional Eligibility Criteria A referring employee is eligible for a bonus for each referred candidate that is selected that meets the above criteria and any additional criteria established by the agency. § 2.4. Referred Candidates § 2.4(a) Must Be Hired and Remain Employed To generate a bonus, the referred candidate must be hired to an eligible agency and classification approved for this referral bonus program, then stay at that position for no fewer than 90 days. State law requires that hired employees must meet the minimum eligibility requirements for the position and be among the most qualified in the referred applicant pool. “Referring employees and referred candidates may not agree to share a referral bonus.” Limitation on Number of Referral Bonuses That Any Employee May Receive No referring employee may receive more than five referral bonuses under this policy per fiscal year. (When a bonus is split pro rata because a referred candidate lists more than one referring employee, only the resulting fraction of the bonus counts toward this limit.) § 3.3. Payment A referral bonus payment shall not be considered as compensation in terms of contributions to and determination of benefits for any of the State's retirement system. A
Limitation on Number of Referral Bonuses That Any Employee May Receive No referring employee may receive more than five referral bonuses under this policy per fiscal year. (When a bonus is split pro rata because a referred candidate lists more than one referring employee, only the resulting fraction of the bonus counts toward this limit.) § 3.3. Payment A referral bonus payment shall not be considered as compensation in terms of contributions to and determination of benefits for any of the State's retirement system. A “Schedule — A referral bonus greater than $250 shall be paid in three installments: 25% of the referral bonus awarded after three months from the hire date, 25% of the referral bonus awarded after six months from the hire date, and 50% of the referral bonus awarded at one year of continuous employment.” • Establish agency procedures for receiving referrals from eligible employees and receiving information from referred candidates to determine eligibility for a referral bonus. 1 The referring employee may still receive payment if they were separated from the agency due to retirement prior to the time the referral bonus is to be paid. Employees who separate from the agency for other reasons continue to not be eligible to receive the referral bonus.