Your team already knows people who would be good at the job. A referral program asks them to say so, and tells them what they get when a referral is hired. This employee referral program template puts the program on one printable page: who can refer, who cannot, the eligible roles, the bonus and when it is paid, how to make a referral and the rules. A second page is a tracking sheet that lists each referral and works out when each bonus is due. The editable sample is a fictional shop's program, started on September 1, 2026.
Make an employee referral program
- Name the program and, if you like, add the business, the program owner who answers questions, and the date the program starts.
- Say who can refer, such as every team member after their first 30 days, and who cannot, such as the hiring manager for their own roles.
- List the eligible roles, one per line.
- Enter the bonus for one hire and choose how it is paid: one payment a number of days after the new hire starts, or two payments, such as half on the start date and the rest after 90 days.
- Explain how to make a referral and write the rules, one per line.
- Add each referral to the tracking sheet as it comes in: the date, who referred whom, the role and the stage. Once a candidate is hired, enter their start date and the bonus due dates appear.
Only the program name and the bonus are required, so you can print the outline and fill in the rest by hand. A split bonus needs a first payment smaller than the full bonus, and the second payment has to come after the first. A start date belongs only on a hired candidate, and only a hired candidate's bonus can be marked paid. Use Start blank for your own program or Reset sample to see the example again.
What is an employee referral program?
An employee referral program is a standing offer to your team: tell us about someone good, and if we hire them, we pay you a bonus. It works because people rarely recommend someone who would embarrass them, and a candidate who knows someone on the team knows what the job is really like before they start.
A referral is a way into the hiring process, not a shortcut through it. The candidate still applies, still has the same interview and is scored the same way as everyone else. The interview scorecard keeps the questions and ratings the same for each candidate.
Write a referral bonus policy
A referral bonus policy answers the questions people will ask before they refer anyone. How much is the bonus? When is it paid? What happens if two people refer the same person? Write the answers down once as your referral program rules, so every bonus is decided the same way.
- The amount. Choose one you can pay for every eligible hire. Some businesses pay more for roles that are harder to fill. If you do, list those roles separately.
- The timing. Paying part of the bonus on the start date and the rest after a retention period, such as 90 days, rewards a referral that works out, not just one that starts.
- The pipeline rule. The candidate must not already be in your hiring process. Otherwise people are paid for applicants you already had.
- First referrer wins. If two people refer the same candidate, the first referral you receive counts.
- Still employed. Both the referrer and the new hire usually have to still work for you on each payment date.
- Tax. Say that the bonus is paid through payroll and is taxable, like other pay.
Bonus due dates and the program check
Each bonus due date is the hire's start date plus the number of days you set. In the sample, the bonus is $500.00, paid as $250.00 on the start date and $250.00 90 days after it. Jordan Lee started on September 29, 2026, so the first $250.00 was due that day and the second is due on December 28, 2026. Avery Patel starts on November 2, 2026, so the second payment for that hire is due on January 31, 2027. The sheet totals 6 referrals, 2 hired, $250.00 paid and $750.00 still to pay.
The program check never blocks printing. It notes a blank list of who cannot refer and rules that do not mention tax. On the tracking sheet, it notes a referral dated before the program started, a referrer who names themselves, a hire with no start date, and a candidate referred twice. In the sample, Drew Evans was referred by Priya Shah and again two days later by Alex Morgan, so the check points out that only the first referral can earn the bonus.
Keep referrals fair
People tend to know people like themselves, so a team that hires only through referrals can end up hiring the same kind of person every time. The US EEOC gives the example that relying on word-of-mouth recruitment can break the law when nearly all new hires end up sharing a national origin. Use referrals alongside an open advert, such as one from the job ad maker, and agree the role first with a job requisition form.
Rules vary by place
Referral bonus rules vary by country, state and industry. In most places a cash referral bonus is taxable pay for the employee. In the United States, the IRS lists bonuses among the supplemental wages in Publication 15, the employer's tax guide. In the UK, GOV.UK lists bonuses among the payments you record as normal pay in payroll. Check your own payroll and hiring rules before you launch the program. This page and the planner are not legal or tax advice.
Print or download the program
Print / PDF gives you the one-page program outline to post in the break room or hand out, followed by the referral tracking sheet on its own page. A blank section prints as lines to write on, and an empty tracking row prints as a blank row. The text download holds both pages. The CSV has one row per referral, with its stage, start date, each bonus due date and amount, and whether it has been paid, ready for a spreadsheet.
When a referral is hired, welcome them with the onboarding checklist, and pay the bonus on the dates the sheet shows.
Frequently asked questions
Can I make an employee referral program without an account?
Yes. The planner runs in your browser and needs no sign-up. Download or print the program to keep it, since the draft lives only in this tab.
How much should a referral bonus be?
Pick an amount you can pay for every eligible hire, and keep it the same for each role on the list. A split payment lets you pay part of it once the new hire has stayed for a set number of days.
Is a referral bonus taxable?
Usually, yes. A cash bonus is normally treated as pay and goes through payroll with the usual deductions. Rules vary by place, so check with your payroll provider or tax adviser.
Who should not be eligible for referral bonuses?
Programs often leave out the hiring manager for their own roles, the people who approve the bonus, and owners. Many also refuse a referral for someone who is already in the hiring process.
Does the planner pay the bonus or tell anyone?
No. It prepares a printout, a text file and a CSV. Nothing is paid, sent or approved. Pay bonuses through your own payroll.