Tips for writing an external referral policy
Starting a new referral program can be exciting, but figuring out some of the logistics can seem overwhelming. To help you get your best foot forward, we've created a guide to help you draft your external referral policy.
Step 1: Start with the basics
Before diving into the intricacies, you'll want to establish the basics:
- Who is (and is not) an eligible participant?
- Who is (and is not) an eligible candidate?
- What is the reward?
- When does the reward get paid out?
- How does the reward get paid out?
Step 2: Consider the edge cases
- What happens if a candidate is referred multiple times by different people? Who receives the reward?
- If the candidate also applied to the role directly, is the referrer still eligible for the reward?
Step 3: Iron out the details
This is the point where you may need to call in assistance from your legal and/or finance team. Some of these details may include, but are not limited to:
- What is the payment process internally?
- What steps does the participant need to take to get paid? What information will they need to provide?
- Are rewards taxable? Who is responsible for those taxes?
- Are participants required to complete and submit a W-9?
- Is there a limit to what your referral policy can be?
- If someone refers 10 people and they all get hired, does that individual receive 10 rewards?
Step 4: Write it all out
If you haven't already started drafting your policy, now is a good time to get it all down in one place. Make sure it is clear and concise. Formatting should look something like this
- Introduction / Summary
- Eligibility Requirements
- How to Submit a Referral
- Rules & Terms
- Additional Notes
Step 5: Reserve your right to edit the policy
At some point, you may want to change your policy. Make sure you add a statement in your policy that reserves your right to edit or discontinue the program at any time.
Step 6: Have fresh eyes review your work
Before launch, you'll want someone (or multiple people) to review your policy to ensure it makes sense to the average person and there are no gaps or loopholes. Your policy should balance being simple and easy to understand while also covering all your bases.
Step 7: Iterate and add final edits
After fresh eyes review your work, you'll want to isolate time to read through your policy again. Add any edits or iterations that have come up in the review process.
Step 7: Add your policy to Drafted
To add your policy to Drafted, go to Settings > Edit Profile. Scroll to where it says "External Referral Policy" and add a URL to your full policy. This will allow visitors to your public referral page to review your policy before submitting a referral.
Have questions? Contact us at email@example.com.