Employee Referral

Employee referral programs are formal programs that employers have set up to encourage employees to refer candidates for positions within the company. Referral programs benefit both the employer and current employees and potential new employees. In some cases, an employee can receive a bonus when a recommended candidate is hired.

A referral program is one way of ensuring that the company is recruiting the best talent for available positions. Employees may have friends or coworkers who they know are talented and a perfect fit for this culture. Over 80% of employers see employee referrals as the best source for generating a return on investment. They are four times more likely to be hired and 45% stay with an employer for more than four years, compared to candidates who are hired by a job exchange.

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