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Employee referral programs
What is an employee referral program?
An employee referral program is a system where companies reward their employees for recommending candidates for open positions. If the referred candidate successfully gets hired, the employee who made the recommendation receives a reward. This could be a cash bonus, an extra day off, or another type of incentive.
Referral programs benefit everyone:
- Companies save time and resources since employees help pre-screen candidates.
- Employees get financial or non-financial rewards for contributing to the hiring process.
- Candidates have a faster and smoother hiring experience through personal recommendations.
These programs help build stronger, more engaged teams. Employees tend to refer people they believe will be a good fit for the company culture and perform well in the role.
For a referral program to work effectively, companies need to set clear guidelines and keep employees informed about the process. This includes defining reward amounts, payout timelines, and what qualifies as a successful referral.
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