What is an Employee Referral?

Employee referral is a sourcing method used by recruiters whereby candidates are referred for an open position by existing employees using their personal networks. Some organisations have a formal employee referral program in place, incentivising employees with a bonus or similar reward, to put forward individuals they feel would be a good fit for a role. The process can be as informal as emailing the hiring manager or could include directing potential candidates to an employer portal to initiate the process. There are several benefits to including this approach to hiring as part of the overall process. These include a decrease in hiring time as well as associated costs. It can also potentially increase employee retention as well as serve as a means of pre-screening candidates, particularly for culture fit.