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Many organizations are increasingly using employee referrals as a recruitment method to identify potential job candidates from existing employees' social networks. This approach has gained popularity due to the high volume of applications from job boards and the need for more efficient hiring processes. Some companies set goals for the ratio of hires from referrals and offer incentives, such as cash prizes, to employees who successfully refer candidates. Research indicates that referral-based recruitment is highly effective, resulting in lower turnover rates and greater job satisfaction for referred employees compared to those hired through formal methods.
