by Andy Rodman
Q My company is having difficulty attracting qualified candidates for high-tech positions. We’re considering implementing a referral bonus policy, under which a current employee would be paid $500 for referring a candidate who is hired. Is this type of policy legal?
A There is nothing inherently illegal about a referral bonus policy. In fact, many companies have successfully implemented such policies to attract and retain qualified employees. Some studies have shown that employees hired through word of mouth are less likely (perhaps up to 15 percent less likely) to quit.