Employee Referral Template for Australian Businesses

An employee referral program isn’t just about saving time in the hiring process; it’s about finding qualified candidates who already understand your company culture, because someone they trust is already part of it.

What is covered in this employee referral template?

If you’re setting up or refreshing your employee referral program, this employee referral template gives your team the tools to get started with confidence. You’ll find:

• A clear message employees can use to refer qualified candidates
• Language that reflects your company name and culture
• A simple, repeatable referral process to support successful referrals
• Guidance on when and how to share the referral message

It’s designed to save your team time and make it easier for current employees to help bring the right people in.

What is the purpose of an employee referral program?

An employee referral program is a structured way for your team to recommend people they know for roles within your organisation. It’s more than a sourcing tool, it turns your current employees into trusted advocates, helping you find people who are not only qualified but likely to thrive in your workplace.

The program establishes a straightforward process for employees to submit referrals, for Human Resources (HR) teams to track candidates, and for rewarding staff when their recommendations lead to successful hires. These rewards might be financial bonuses, extra holiday time, or other meaningful incentives that recognise the employee’s contribution to building the team

Let’s look at why this matters: 

Finding qualified candidates

HR teams face real challenges when it comes to finding the right talent. Even with solid systems in place, it’s easy to get overwhelmed by a flood of applications. 

A well-planned employee referral program can add real value. Instead of relying solely on external channels, you tap into the networks of people who already understand what success looks like inside your business.

When an employee refers someone, they’re applying their knowledge of both the role and the person. A pre-screening that no algorithm can match for insight. 

People referred by your team typically come with a clearer picture of the job. They’ve had honest conversations with their colleagues about the realities of working with you. This leads to genuinely suitable candidates, not just those actively job hunting.

Maintaining company culture

Employee referrals help protect and strengthen your organisational culture by bringing in people who already align with your values and work approach. Your current team instinctively understands your workplace dynamics and won’t recommend someone who would disrupt them.

When your staff refer candidates, they put their own credibility on the line. This natural filter produces candidates who have not only the right skills but also the right mindset to integrate well into your existing team.

People who join through referrals also tend to settle in more quickly. They already have someone they know to help navigate the unwritten rules and practices, making their onboarding smoother and shortening the time before they become fully effective.

Reducing recruitment costs

Despite the referral bonuses, referral hires typically cost less when compared with traditional recruiting, which spends thousands of dollars per hire, including job board fees, recruiter time, and agency commissions.

In comparison, the process becomes more efficient, with fewer interviews, less time screening unsuitable candidates and quicker decisions. 

The savings continue beyond initial hiring. Because referred employees tend to stay longer, you save on the substantial costs of turnover including the productivity gaps, repeated recruitment efforts and new hire training that drain resources when people leave quickly.

Improving retention rates

Research consistently shows that employees hired through referrals remain with organisations longer than those hired through other channels.

This happens for several reasons. Referred hires usually have more realistic expectations before they start. They’re also more likely to feel connected to the organisation from day one, with relationships already in place.

The employees who made the referrals also become more engaged. By bringing friends or former colleagues into the team, they develop a deeper investment in the company’s future and success.

Accelerating the hiring process

Ever had a hiring process that just seemed to take forever? While traditional hiring can drag on for months (especially when hiring for senior positions) referrals often move through the process much faster.

Teams can often streamline early screening steps because referred candidates come pre-vetted by someone you trust. These candidates typically respond more promptly during the interview process and are more likely to accept when you make an offer.

This speed becomes particularly valuable in competitive talent markets or for specialist roles. Being able to secure good people quickly, before your competitors, can make all the difference to your team’s capabilities.

Expanding diverse talent network 

By encouraging referrals from underrepresented groups, you activate trusted networks that often sit outside traditional channels, helping you reach qualified candidates who may not have applied otherwise due to concerns about inclusion.

To make this effective, ensure your referral program explicitly values diversity and provides guidance to help your team understand how they can contribute to building a more inclusive workplace through their referrals.

Fostering employee engagement 

When employees actively participate in building their team, they develop a stronger sense of ownership in the organisation’s direction. Your team will enjoy coming to work more when they have meaningful and established connections in the office, and referral programs help create these relationships.

In simpler terms, recognition for successful referrals matters beyond the financial reward. Being acknowledged for contributing to the company’s growth reinforces employees’ sense of value and importance within the organisation.

What is the hiring process for referrals?

A streamlined hiring process for referrals respects both the candidate’s time and your referring employee’s reputation. Here’s how to structure it effectively:

1. Simple submission system: Create a straightforward way for employees to submit referrals, whether through your Applicant Tracking System (ATS), a dedicated referral portal or even a simple form. The key is making it accessible and quick, requiring just essential information like the candidate’s name, contact details and potential role fit.
   
2. Immediate acknowledgment: When a referral comes in, acknowledge it promptly to both the candidate and the referring employee. This shows respect for everyone involved and sets positive expectations from the start.
   
3. Expedited screening: Referred candidates should receive priority screening. While they still need to meet your core requirements, you can often fast-track initial stages based on a trusted recommendation.
   
4. Regular communication: Keep both the candidate and the referring employee updated throughout the process. This transparency builds trust and recognises the personal connection involved in referrals.
   
5. Tailored interviews: During interviews, acknowledge the referral relationship without making it the focus. Consider involving the referring employee at appropriate stages, perhaps for an office tour or informal chat, to strengthen the connection.
   
6. Thoughtful decision-making: Make hiring decisions with the same rigour you’d apply to any candidate, but with awareness of the internal relationship at stake. If declining a referral, do so with particular care and clarity.
   
7. Enhanced onboarding: When hiring referred candidates, leverage their existing connection to create a smoother transition. The referring employee can serve as an informal mentor through regular 1:1s, helping the new hire navigate your workplace culture more effectively.

Throughout this process, maintaining the right balance is crucial.  While referred candidates may get special attention, they must still meet your standards. When this balance is achieved, the hiring process reinforces your referral program’s value.

Setting up a successful referral program

Creating a referral program that works requires more considered planning than simply announcing bonuses and hoping for the best. But where do you start?

Who’s going to own this initiative? What does success actually look like for your business? Have you allocated proper resources? These foundational questions need answering before you launch.

Establishing clear ownership and governance

Designate a HR team member with leadership support to champion the program. This role involves more than just administration. It requires someone who can advocate for resources, troubleshoot challenges, and maintain momentum when enthusiasm naturally wanes.

Creating a small steering committee with representatives from different departments to provide diverse perspectives and broader buy-in can help. 

Defining meaningful success metrics

Establish concrete goals for hiring targets, participation rates and diversity outcomes.

Vague objectives lead to vague results. Instead, set specific metrics like “increase referral hires to 30% of all new employees” or “achieve participation from at least 40% of staff across all departments.” These clear targets make evaluating progress easier and demonstrating value to leadership.

Securing resources and executive sponsorship

Allocate a realistic budget for incentives, technology, and ongoing promotion. Underfunded programs often struggle to gain traction. Beyond financial resources, consider the time commitment required from HR, communications teams, and department managers who will help drive participation.

Secure visible executive sponsorship to signal the program’s importance. When leadership actively promotes and participates in the program, it sends a powerful message about organisational priorities. This might include executives sharing their own referral successes or recognising top referrers at company events.

Building a lasting incentives strategy

The success of your referral program ultimately hinges on incentives that actually motivate your team to action. Even the most well-designed program will struggle if your rewards don’t resonate with employees.

In tech companies, learning opportunities often outperform cash bonuses. Access to premium online courses or conference attendance can drive stronger participation than standard monetary rewards. For professional services firms, recognition at leadership events can be surprisingly effective.

Try mixing immediate rewards (like a small thank you for submissions) with milestone bonuses for successful hires. This dual approach keeps enthusiasm high throughout the process. Consider team-based incentives like quarterly celebrations or team experience days for departments with high participation rates that can foster healthy competition.

Whatever you choose, make it visible through regular updates, leaderboards, or digital recognition that showcases contribution. Build flexibility into your incentive structure so you can refresh it periodically to maintain interest.

Implementing supportive technology and policies

Your technology and policy decisions will determine how smoothly your program runs. Choose systems that integrate with your ATS, offer mobile-friendly submission, provide automated updates, and deliver performance analytics.

Develop clear guidelines in your employee referral program policy covering who can refer, what constitutes a valid referral, when rewards will be distributed, and how conflicts will be resolved. These policies should be comprehensive enough to provide clarity but simple enough that they don’t create unnecessary barriers to participation.

The most sustainable programs balance structure with simplicity, providing enough clarity to function effectively while remaining adaptable to your organisation’s evolving needs. With your program up and running, you’ll need to turn your attention to tracking its impact, which brings us to the critical practice of measuring recruitment effectiveness.

Measuring referral program effectiveness

Many companies launch referral initiatives with enthusiasm but fail to establish proper measurement systems. This makes it near impossible to demonstrate value or identify improvement areas. That’s not where you want to be post-launch. 

C-suite leaders respond to financial impact. Develop a clear ROI calculation comparing program costs against quantifiable benefits. Look deeper at program health patterns; are referrals coming from across your organisation or concentrated in certain teams? Which departments see the most success? Are all employee levels participating? These insights reveal where your program resonates and where it needs attention.

Schedule regular review cycles to identify trends and make adjustments when participation or quality metrics change. The most successful organisations treat measurement as an ongoing commitment rather than a one-time evaluation, using these insights to continually refine their approach.

Track these core metrics to evaluate program effectiveness:

• Referral submission rate and conversion to hire percentages
• Time-to-hire and cost-per-hire compared to traditional channels
• Quality indicators like performance ratings, 360-degree review scores, and promotion velocity
• Retention rates at 6, 12, and 24 months versus other sources

Ready to put your referral programme into action? Download our complete template today and start building a more connected workplace.And once your referral program helps you find those perfect team members, our performance management software helps you lead them with ease. Talk to our team and we’ll help you transform new hires into top performers through continuous feedback and a positive culture that fulfills career ambitions.