Employee referral is a form of recruiting new employees through the introduction of current employees in the company.

 

Using the Employee Referral program helps the company save on recruitment costs, and at the same time increases the ability to find high-quality and suitable employees for the company. This also helps ensure that the referred employee gets a higher rating when compared to other candidates during the hiring process.

 

When a company is looking for a salesperson, it will ask current employees of the company to recommend people with experience or knowledge of the business who may be a good fit for the job. If one of the candidates referred by the current employee is employed, the referrer will receive a bonus or other reward depending on company policy.