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