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What Is a Reward Shop for Employees and What Are Its Advantages?

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Reward Shop

The employees are the heart of a referral program. The success of an employee referral program depends entirely on their activity, commitment to sharing and communicating job ads and being part of the employer brand. Therefore, it’s very important to get the employees on board and motivate them in the long term. In this article, we explain what role rewards play and what a reward shop is.

The Use of Rewards in Recruiting

 

If employees and their referrals are part of a company’s recruiting strategy, it is important to motivate them in the long term. Getting employees on board in the early days plays an important role, just as continuous communication about new jobs and updating employees on the status of their referrals is also a crucial part of a referral program’s success. A digital program like Firstbird offers transparency and informs employees about relevant positions depending on their personal interests and work location, as well as status updates.

So it is also advisable to use rewards as part of a referral program. They are an expression of gratitude and appreciation. After all, with the help of employees, recruiters gain a valuable talent pool of referred candidates and reach the passive job market, a path that is not available with other recruiting channels. 

More good reasons why you should have a reward strategy in place can be found in the Firstbird Guide to Rewards. 

There are non-monetary and monetary rewards and these are usually given after the successful hiring of a referred candidate or paid out over a certain time period (on hire, and after 6 months of employment for example). There is no one-size-fits-all approach to rewards. Every person and every employee is motivated by something different. Therefore, it is good to offer a variety of rewards. We give examples of non-monetary and monetary rewards in our article “15 Creative Ideas For Employee Rewards“.

In order to constantly keep motivation high, it is advisable to give rewards throughout the hiring process, for example, when a good referral is put forward. In an ideal scenario, these rewards would be handled in the form of a reward shop, so that the administrative effort would remain low.

Firstbird developed their reward shop in 2019. You may be familiar with such a concept from retailers. It is based on a coin collection system. Employees collect coins for their activities in the digital employee referral program. This can be, for example, for the number of job views reached or for providing referrals. The employees remain motivated by the ongoing appreciation and continue to refer candidates from their network. There can be many reasons why an applicant may not be hired; and it usually has nothing to do with the person who has referred them. This is why it is important employees already receive recognition from the company and their TA department for their activity as brand ambassadors. Employees can exchange the coins they have generated for all kinds of rewards in the reward shop. The talent acquisition manager can determine the amount of coins needed for each reward in advance; allowing the redemption of the reward then to run automatically. The number of rewards can be limited, enabling recruiting departments to plan realistically and to calculate rewards in advance. It's a win-win situation for both sides: employees choose individually from a pool of rewards and recruiters receive ongoing employee motivation, which results in increased activity and a higher referral rate.
The Firstbird reward shop can be activated by simply activating the coin collection feature. Recruiters can determine in advance which rewards will be offered in the reward shop, and how many coins are required for employees to redeem them, and then publish them. No further technical requirements are required. We explain details about the functionality of the reward shop in our Help Center.
The use of a reward shop enables employees to be motivated in the long term and gives them a choice to determine what motivates them. There is no significant additional work required for recruiters and, depending on the package, no additional costs associated with it (price overview). However, a predetermined reward strategy is necessary. It is advisable to start slowly and initially put only a few rewards in the reward shop. In this way, employees and recruiters get a feeling for how quickly rewards are redeemed and which rewards are particularly popular with employees. Subsequent adjustments to the number of rewards or expansion of additional rewards are possible at any time.
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You can discover which rewards work particularly well and how other companies manage and use rewards in our Employee Referral Employee Benchmark Study.

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