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HR-126 Employee Referral Incentive Program


Recruiting and hiring quality candidates is vital to achieving the mission and goals of the university. Employees understand the unique needs and benefits of the university and are encouraged to refer quality candidates who will successfully contribute to achieving the University’s goals and strategic plans. Candidates sourced from employee referrals are one of the University’s recruitment tools available to hiring departments.

The University may provide employees a $500.00 incentive for each candidate referred who is hired into a benefit-eligible administrative, service, and support position. All candidates will be evaluated for employment consistent with University policies and procedures.

This policy provides guidelines and procedures for the University’s Employee Referral Incentive Program.

If any part of this policy does not reflect the Collected Rules and Regulations (CRR), the provisions of the CRR will govern.

HR Policy Provisions

  1. Purpose
    Employee referral incentives are a recruiting strategy utilized for approved benefit-eligible vacancies, including but not limited to, hard to fill positions, vacancies in high demand, and other positions.
  2. Definitions
    1. Referring Employee – An active employee of the University, including benefit-eligible and non-benefit eligible academic, staff, and student employees.
    2. Referral – An external applicant, or current internal non-benefit eligible employee, who has been referred by a Referring Employee.
    3. Eligible Vacancy - Benefit-eligible staff vacancies as identified by the college, school, or division leader, or their delegate. See HR-101 (administrative, service, and support staff – regular employee).
  3. Requirements
    1. Hiring departments are responsible for determining which Eligible Vacancies are approved for the Employee Referral Incentive program prior to posting the vacancy.
    2. Referring Employee must be an active employee of the University at the time the Referral applies and at the time the incentive is paid, regardless of the funding source of their salary.
    3. Referrals must identify the Referring Employee at the time of applying. Only one employee may be identified as the employee who referred them.
    4. The following roles are not eligible to receive an employee referral incentive.
      1. University, campus, and college, school, division leaders such as CHROs, CIOs, CFOs, Deans, Provosts, Chancellors and the President of the University including all levels of these titles.
      2. Hiring supervisors, others involved in the selection process, and individuals serving on the interview committee.
      3. HR Directors and recruiters.
  4. Incentive Payment
    1. A Referring Employee may receive $500.00 for referring an eligible applicant who is hired into an eligible vacancy.
      1. There is no maximum to how many times an employee may refer applicants or earn a referral incentive payment.
      2. Only one Referring Employee will be eligible for an incentive payment per approved vacancy.
      3. The hiring department is responsible for funding the payment.
      4. Incentive payments are paid after the Referral’s hired date, on the next available regular pay cycle. The payment will not be grossed up to cover taxes.
    2. Other compensation provisions include:
      1. Incentive payments are considered extra compensation and, as such, are not included in base pay for determining benefits. Contact the Human Resource Service Center for questions.
      2. In accordance with Internal Revenue Service regulations, all payments are taxable compensation subject to withholding and other appropriate deductions, and will be reported on the W-2 form as part of the employee's total compensation.
  5. Process overview
    1. Hiring unit submits the vacancy requisition with appropriate approvals.
    2. Applicants complete the Employee Referral information (name, email).
    3. Referring Employee receives an email confirmation to acknowledge the referral.
    4. Each month the university will identify incentive payments to issue.
    5. Approval is requested from the funding department prior to payment.
    6. Payment is processed according to university payroll procedures.
  6. Appeals
    1. Actions under this policy are subject to review and approval by human resources staff responsible for administering the incentive program.
    2. If an employee reports a policy violation, the employee may appeal the decision by submitting a written appeal within five (5) calendar days to the campus, hospital, or system Chief Human Resources Officer or designee stating the reason for the differences of interpretation of policy.
    3. The decision issued will be final with no other review permitted.
  7. Plan evaluation
    In compliance with CRR 360.150: Principles for the Establishment and Operation of Incentive Compensation Plans, this plan is subject to annual review and may be discontinued, modified, or renewed at the discretion of the University. The plan will expire five years from the effective date without review and re-authorization by the University of Missouri President. Changes in plan design will require authorization by the University President.

See Also

HR-126 Employee Referral Incentive Program Q&A
HR-101 Employment Status
HR-214 Extra Compensation

CRR Section 360.150: Principles for the Establishment and Operation of Incentive Compensation Plans

Date Created: 04/15/2022

Reviewed 2022-04-13