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Many organizations utilize employee referrals as an internal recruitment method to identify job candidates from existing employees' networks. This practice has gained popularity due to the overwhelming number of applications from job boards and the need for more effective hiring strategies. Some companies set specific goals for hires from referrals and offer incentives, such as cash rewards, for employees who successfully refer candidates. Research indicates that referral programs are among the most effective recruitment methods, leading to lower turnover rates and greater job satisfaction for referred employees compared to those recruited through traditional means.
