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Many organizations utilize employee referrals as an internal recruitment method to identify potential job candidates from existing employees' networks. This trend has increased recently, largely due to the overwhelming volume of applications from job boards, prompting a need for more efficient hiring practices. Some companies set specific hiring goals from internal referrals and offer incentives, such as prizes or cash, to employees who successfully refer candidates. Research indicates that such referral programs are highly effective, as employees hired through referrals typically exhibit lower turnover rates and higher job satisfaction compared to those recruited through formal methods.
