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Employee Referral Bonus Incentive

Copied from the UDAF Policies and Procedures Handbook:

● To encourage employee referrals for hard-to-fill career-service positions, the Department may grant an Employee Referral Incentive to a Department employee pursuant to Utah Administrative Code Subsection R477-6-5(4), Market Based Bonuses.

● A Department employee who refers a candidate to fill an eligible position may receive a $500.00 Employee Referral Bonus (ERB), when the candidate has successfully been hired and has worked for the Department for 30 days.

● The Employee Referral Bonus (ERB) process shall be implemented as follows:

○ The Department shall identify recruitments for positions having a referral incentive in the recruitment announcement sent by email to Department employees.

○ Recruitment announcements for positions having a referral incentive shall include questions asking the candidate if they were referred by a current Department employee; and If so, by whom.

○ For an employee to be eligible for this incentive, the referred candidate must provide the name of the Department employee who made the referral.

○ The Department employee who refers a candidate must notify the HR Representative responsible for the recruitment via email that they have referred a candidate who has applied for employment and include the following:

○ Candidate’s name, and

○ Position for which the candidate applied.

Once notified, DHRM shall track the status of the referred candidate and determine if the referred candidate has been hired.

If the referred candidate is hired and has worked for the Department for 30 days, DHRM shall:

Prepare an ERB incentive award letter for the Commissioner’s signature if the candidate is hired,

Initiate payment to the referring employee when the referred employee has successfully been hired in the eligible position, and

Place copies of the incentive award documentation in the referring employee’s personnel file.

ERB payments shall be processed through payroll to be included on the referring employee’s paycheck.

All ERB payments are pre-tax and are treated as taxable income by the IRS.

The time sheet records that include the ERB amount must include a reference to this policy and Utah Administrative Code Subsection R477-6-5(4).

The referring employee must still be employed by the Department at the time they become eligible for the respective incentive in order to receive an ERB.

An employee may not receive an incentive for referring a candidate currently working in a career-service position or temporary capacity for the Department.

A hiring official who was involved with a specific hiring decision may not receive an incentive for referring the hired candidate.

Employee Referral Bonuses shall be subject to the availability of funds.

An employee may not receive employee referral bonuses totaling more than $1,000 in any fiscal year.

A Division Director may not receive an ERB for referring people within their own division.


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