Cottage Grove’s Cash Incentive Payment Program

Faced with a competitive labor market in both the public and private sectors, the City of Cottage Grove sought a creative way to stand out to potential employees. After brainstorming with the city’s hiring managers, the human resources department began researching a cash incentive referral program. Developing the initiative and getting it off the ground was a relatively quick process. Human resources staff estimates it took only about three to four hours to research the issue, draft the program, and submit it to the city attorney for review.

In February 2022, the city piloted a cash incentive payment program to current city employees for referring an applicant to city employment. If an applicant is ultimately hired and works at least 320 hours without any documented discipline, the city employee who referred the individual is awarded a $200 cash taxable payment. The referral incentive is then charged to the referring department’s budget.

This incentive program has been a valuable tool in the city’s recruitment toolbox. The city hopes that engaged and productive employees refer candidates they’re excited to partner with.

Because the initiative is new, the city will be closely reviewing recruitment data associated with this program and will revisit as needed.

For more information about this program, please contact Joe Fischbach, Cottage Grove HR Manager at [email protected].