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Many organizations utilize employee referrals as an internal recruitment method to find potential job candidates within their existing employees' social networks. This approach has gained popularity due to the overwhelming volume of applications from job boards and the need for more efficient hiring processes. Some companies set specific hiring goals for referrals and offer prizes or cash incentives to employees who successfully refer candidates, usually after confirming a good hire. Research indicates that such referral programs are among the most effective for recruitment, as referred employees often exhibit lower turnover rates and higher job satisfaction compared to those hired through more formal methods.
