1. Internal Factors
   1. Employee benefits. Is our compensation in line with our competitors? Do we offer benefits that staff find valuable? Do we provide enough opportunities for learning and development? Can our staff achieve a healthy work-life balance?
   2. Culture and leadership. Do we have a supportive culture? Are we firing more people? Are we filling leadership positions internally? Can employees voice their concerns? Are our managers aware of these concerns and working to resolve them?
   3. Reputation. Do our mission and values align with our employees? Do our actions reflect these values? Have we been involved in any scandals recently?
   4. Organisational growth. Are we finding it difficult to retain staff in a specific location?
2. External Factors
   1. Competition. Are we losing staff to competitors? Is it due to the benefits they provide or the type of work they offer?
   2. Lack of interest. Are software engineers gravitating towards other industries? Are they moving to in-house roles?

One alternative and more creative structure would look at the main ‘lifecycle’ events within an employee's life: hiring process (recruitment), onboarding, performing the job, etc. and then identify root causes under each area.

1. Quality of referrals
   1. Limited reach. Relying on employee networks may result in a smaller applicant pool or a less diverse pool of candidates. This can be mitigated by clearly defining referral criteria and providing employees with bias-awareness training.
   2. Lower quality referrals. Employees may be motivated to refer less-qualified candidates to earn the referral incentive. This can be mitigated by implementing online screening tests and providing feedback to employees on the quality of their referrals.
2. Conflict of interests
   1. Personal relationships. Employees may prioritise candidates they have relationships with rather than those most qualified. This can be mitigated by implementing a vetting system for referred candidates to ensure they meet company standards.
   2. Competition for rewards. The incentive programme may foster competition among employees for rewards, resulting in an unfavourable work environment. This can be mitigated by awarding team bonuses for achieving referral goals within a department, fostering teamwork and collaboration and ensuring fair and equitable incentive programmes.
3. Legal considerations
   1. Discrimination. The incentive program may result in discrimination if not properly managed. To mitigate this, employees should be encouraged to refer candidates from diverse sources and train them on diversity and inclusion practices.
   2. Tax implications. The incentive scheme may have tax implications for the company and its employees. Tax and legal professionals should confirm this to ensure that the programme complies with applicable regulations and is clearly communicated to employees.

It seems like the program would cause a loss of $380k per year, making it an unfeasible initiative. Lowering the referral bonus could potentially decrease the total cost of the program; however, it may affect the quantity and quality of referrals, leading to decreased productivity and further recruitment costs down the line. 

Some potential solutions you could have considered as part of this question:

Improve branding:

• Develop online presence. Analyse Glassdoor feedback, improve company website and LinkedIn pages, showcase the company’s culture, mission, and values.
• Invest in advertising. Online, TV, newspaper.
• Attend career fairs. Attend career fairs and other industry events to connect with potential candidates and promote the company's brand.
• Improve perception. Invest in the local community, develop CSR initiatives, develop clear plans for becoming carbon neutral. 

Improve compensation and benefits:

• Competitive compensation. Offer competitive compensation packages that are in line with industry standards to attract and retain top talent.
• Attractive benefits. Offer attractive benefits, such as flexible working hours, remote work options, health insurance, and retirement plans, to make the company more appealing to potential candidates.
• Employee recognition programs. Implement employee recognition programs that reward high-performing employees with bonuses or other incentives.

Invest in talent development:

• Career growth opportunities. Offer career growth opportunities, such as training programs, mentorship, and opportunities for advancement, to attract and retain ambitious candidates who are looking to grow their careers.
• Leadership development programs. Implement leadership development programs that help to cultivate the skills and competencies necessary for future leaders within the organization.
• Partner with local universities. Develop a presence at universities in the area and offer upskilling programmes and internships to identify and cultivate top talent.