Employee referral is a method of recruiting new workers by introducing existing employees to the organization. Using the Employee Referral program reduces recruiting expenses while increasing the company's capacity to discover high-quality and fit individuals. This also ensures that the suggested employee receives a higher rating than other prospects during the recruiting process.
Example
When a firm is searching for a salesman, it will ask current workers to identify candidates with relevant business experience or knowledge who would be a suitable match for the position. If one of the prospects identified by the present employee gets hired, the referrer will be given a bonus or other incentive based on company policy.
