COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Employee and Public Services Department

DATE:

July 30, 2001

BOARD MEETING DATE:

August 14, 2001

TO:

Honorable Board of Supervisors

FROM:

Mary Welch, Employee and Public Services Director

SUBJECT:

Employee Referral Program

Recommendation
Adopt a resolution approving an Employee Referral Program, under which an award of $500.00 would be paid to County employees who refer candidates for employment who are selected for hard to fill classifications.

Background

Over the past years the County has developed a number of programs and services that have improved the County's competitive recruitment and retention position. Programs previously adopted have included competitive salaries and excellent benefit programs, aggressive recruiting outreach strategies, expedited hiring processes, on-line filing of job applications, an on-site accelerated degree program, health and fitness programs, flexible work schedules, telecommuting, transportation assistance and others.

During the January 2001 offsite meeting of top level County management personnel on Recruitment and Retention, a number of strategies were identified as the most appropriate for our County to implement to further improve recruitment and retention of employees. One of the recruitment strategies identified was to provide a mechanism that would pay a referral bonus to an employee who refers a candidate who successfully completes probation.

Discussion

It has been historically difficult to recruit experienced employees in a number of County classifications. Adopting this recommendation would authorize establishment of a program which would provide a financial incentive to County employees to refer qualified candidates for these classifications.

Under the proposed program, current County employees who refer successful candidates to positions which have been "targeted" by the Employee and Public Services Director would receive a referral award. This bonus will only be authorized for new hires and would not be paid to employees who refer current County employees for targeted recruitments (e.g. promotional or transfer opportunities). Upon selection, the referring employee would be issued a referral award of $250, and upon the candidate's successful completion of probation, the referring employee would be issued an additional $250, provided the referring employee is still employed by the County. No employees engaged in recruitment activities will be eligible for this award. Further, no employee within the scope of selection of the candidate will be eligible for this award. Department Heads and Division Directors, Assistant and Deputy Directors, extra-help, contractors and elected officials are not eligible for this award.

The list of classifications designated as "targeted" recruitments would be reviewed every six months by the Employee and Public Services Director and submitted for County Manager approval. Approved classifications would be based on recruitment criteria, and may be removed from the list if recruitment conditions change.

The provision authorizing the granting of Employee Referral Bonuses would expire on December 31, 2002. The County Manager may extend this authorization in one year increments with the authorization sunsetting on December 31 of each calendar year.

The resolution authorizes the Employee and Public Services Director to establish and promulgate guidelines for administration of this program.

A report to the Board on the effectiveness of this program would be made after December 31, 2002.

Fiscal Impact
If the County hires 50 new hires into hard-to-fill classifications annually, and 30% of those new hires are referred by County employees, the cost would be $7,500. Funding is included in the Non-Departmental budget.