An employee referral program is a system whereby current employees of a company refer new job candidates to the company, typically in exchange for a monetary reward. The purpose of employee referral programs is two-fold: to save the company money on recruitment costs, and to increase the quality of new hires by tapping into the employee network.

There are a few different ways that employee referral programs can work. Some companies offer a set monetary amount for each successful referral, while others offer a bonus that is a percentage of the new hire’s salary. Some companies also offer a combination of the two. In addition, some companies offer non-monetary rewards, such as extra vacation days, for successful referrals.

The key to a successful employee referral program is to make sure that it is well- publicized and that employees are aware of the benefits of referring new candidates. Employees should also be given a clear process to follow when making a referral. The referral program should be regularly reviewed and updated to ensure that it is meeting the needs of the company.