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Employee Referral

definition, synonyms and explanation


staff referral, internal referral, employee recommendation

What is Employee Referral

An employee referral is when an employee of a company recommends a friend or acquaintance for a job at the company. The referral may come in the form of a formal application or a casual conversation.

Employee Referral explained

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.

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