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[Music] many organizations rely on employer referrals to identify potential job candidates employee referral is an internal recruitment method employed by organizations to identify potential candidates from their existing employees social networks this trend seems to have grown in recent years in part as a pushback to the sheer volume of applications received through job boards and the need to be more efficient in hiring talent some firms even set goals for the proportion of hires desired from internal referral and some companies provide prizes and cash incentives to employees who make referrals that result in new hires often the incentive is given once the firm is sure that a good hire has been made research has shown that recruiting programs such as these are among the most effective ways to recruit employees moreover employees hired as a result of referrals tend to have lower turnover and experience greater job satisfaction that employs recruited through more formal approaches a stu