How to Run Employee Referral Contests That Actually Work

Let’s say, you’ve been contemplating an employee referral program and the first thought in your mind is…launching it will be the most difficult thing! However, you realize keeping the referrals coming in is the greatest challenge ever in any employee referral program.

Here are some ideas to improve your employee referrals when there is a dip.

Tips to rollout employee referral contests

Competition among employees really works and winners will be happy to receive a cash or non-cash reward at the end of any competition. Likewise, you can use this strategy to bring more employee referrals your way.

These contests will enable employees to refer more often than they used to. Every organization, small or big embraces employee engagement programs to boost the work culture, be it fun activities or friendly competitions it will only create room for participation. So be the case with referral contests.

Let’s contemplate the guidelines you can follow for the employee referral contests.

Know your objective

The objective of any referral contests is to increase employee referrals. Keeping that in mind, plan your referral contests accordingly. Raise awareness as to how the referral contest can create a positive synergy.

More than that, employees will come together when conducting such contests. You can also position your recruitment team in the right direction and in turn, they can cultivate the desire in the minds of employees to bring in more referrals.

Create contest rules

You will be able to set the rules right only when you know your outcomes of running a contest. After doing your analysis and selecting the evaluation strategy for the contest, you can create perfect contest rules.

Here’s how you can start with some base or already set rules. But always follow these golden rules.

Identify the platform

Identify or build the referral platform that will allow your employees to share jobs across social channels such as Facebook, Instagram, or WhatsApp .

Set the eligibility

The eligibility criteria with regards to age, gender, team, etc., should be clearly defined. The clarity of who can be considered for participation can chuck out needless doubts. Provide as many details as possible on eligibility to avoid confusion and disagreements.

Entry into the contest

Inform the date and time of the contest like when it will start and its duration. Highlight the time frame and offer guidance on how to enter the contest. Only when employees understand how to enter the contest, you can see a larger number of employees participating in the contest.

Selection and notification of winners

When employees participate in a contest, there is one thing they look forward to, knowing the winners. Facilitate the participants with instructions on how winners are selected and notified.

You can create hype before announcing the winners, share count-down posts, spice it up with fun columns through your internal communication platforms.

Awards and Prizes

The most anticipated and rewarding moment in running a referral contest is receiving prizes. This is a motivational factor for employees to participate in a contest and refer. Don’t opt for just chocolates as your reward, instead, jazz it up with exciting prizes that match the current trends.

Choose your contest type

Showtime for new hires

Involve new hires to participate in referral contests and give a useful perk to the newbies who willingly come forward to refer a friend.

Seasons and festive contest

Host contests for seasons and festive occasions. You can have a pumpkin carving contest during Halloween and connect it with your referral program. Give away referral bonus or paid vacation as rewards. Similarly, you can propose contests for all festive occasions like Diwali, Christmas, and during the hiring season, mostly after the annual appraisals when the attrition rate is at the highest.

Raffle contests

If you have many top referrers who have contributed to sourcing good candidates, you can collate all their names and select the winner by lucky draw. This type of contest can help select one deserving employee out of the many who participated.

Know how to market your contest

Recruiters understand the need to market their referral contests and here’s how they can do it.

Dashboards

Most organizations track employee referrals in a system like ATS. So, recruiters can track and exhibit top recruiters and referrers in the dashboard. They can also market any referral events planned for the near future. The different kinds of referral contests and winners of contests can be showcased with pictures of them receiving awards.

Social Media Platforms

When everyone is connected via social media platforms, this forum can be the best place to market your referral contests. Leave contests with clickable links, which can lead employees not only to participate and win the contest but also to share job descriptions (JDs) with their friends. Once the JD is shared with an employee’s friend, an automatic referral message with the referral bonus information should pop up in their inboxes. Using social media platforms, referral contests or any referral events can reach many prospective candidates within the friend zone of your employees.

Referral Newsletters

As part of your employee referral program, the newsletter you circulate can assist in marketing your referral contest. Read our blog on Referral Newsletter to know more.

After marketing your contest, all you need to do is monitor results and follow-up after the contest.

Finally, monitor results

Ponder on ways to automatically track your contest results. Invest in referral platforms that can be used to track the progress of contests, generate reports, and pick winners. When automation eases your workload, ensure you connect and follow-up with the employees, they should know the contest results and how the winners were awarded. Only by follow-up action, you can inspire more employees to participate in referral contests.

All over the world, recognized employees are the happiest. Only the satisfied employees will bring their acquaintances to work for the same company. It is your duty to make employees feel recognized and motivated, so they choose to bring in their pals and stick together to make the workplace a better one.

FAQs:

1. What is an employee referral contest?
An employee referral contest is a short-term engagement initiative where employees are encouraged to refer candidates for open roles within a set timeframe. Winners are rewarded based on referral quality, quantity, or creativity.

2. Why should organizations run referral contests?
Referral contests create urgency, excitement, and healthy competition among employees. They help boost referral volume, surface hard-to-find candidates, and reinforce a culture of participation in recruitment.

3. What types of referral contests work best?
Some effective contest formats include:

• Seasonal contests (Diwali, Christmas, appraisal cycles)

• Raffle draws for top referrers

• New hire challenges to encourage early participation

• Team-based competitions with cumulative scores

4. How can I promote a referral contest internally?
Promote contests through:

• Referral newsletters

• Dashboards or internal leaderboards

• Slack, Teams, or WhatsApp groups

• Personalized email campaigns

• Social media job-sharing with embedded links

5. What are the key rules for a fair referral contest?
Ensure transparency by:

• Clearly stating eligibility and criteria

• Defining start and end dates

• Outlining how winners will be selected

• Explaining the prizes and reward distribution

• Sending reminders and updates during the contest

6. How can we track and manage contest performance?
Use your ATS or a referral platform to:

• Track referred candidates

• Monitor employee participation

• Automatically generate contest leaderboards

• Export winner data and send follow-up communications

7. What kind of rewards motivate employees in referral contests?
Popular rewards include:

• Cash bonuses

• Gift cards or gadgets

• Paid time off or vacations

• Public recognition via newsletters or town halls

• Donations to a charity of the employee’s choice

8. Can referral contests improve the overall referral program?
Yes. Referral contests energize employees, increase awareness of open roles, and build a culture of talent advocacy. When run consistently and fairly, they lead to a stronger referral funnel and better hiring outcomes.