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Many organizations use employer referrals to find job candidates, leveraging their employees' social networks for internal recruitment. This trend has increased due to the overwhelming number of applications from job boards, prompting a need for more efficient hiring processes. Some companies set goals for the percentage of hires from referrals and offer cash prizes or incentives to employees who successfully refer candidates. These incentives are typically awarded after confirming a successful hire. Research indicates that referral recruiting programs are highly effective, leading to lower turnover rates and greater job satisfaction for employees hired through this method compared to those recruited through more formal approaches.
