HR glossary / E / Employer referral

Employer referral


Employee referral, which means recommending an employer by an employee, involves encouraging current employees to recommend their workplace to friends, family, or colleagues as an attractive place to work. Such programs often offer rewards or bonuses to employees who refer candidates who are subsequently hired. Their goal is to leverage the contact networks of employees to attract potential new talents.

Referring to an employer by an employee is beneficial to the organization for several reasons. First, it allows for time and resource savings that would normally be devoted to recruitment. Second, employees are more likely to recommend candidates who fit well into the company culture, increasing the chances of the hired candidate’s success. Third, employees who recommend their workplace often become more engaged in their duties, seeing that their opinion is valued.

Although employee referral systems are effective, they require proper management and monitoring to ensure the process is transparent and fair for all involved parties.


What makes an employee referral program successful?

A successful employee referral program is characterized by clear program guidelines, effective communication, and attractive incentives. It must be easy for employees to understand how they can participate and what they will gain from the process. Moreover, ensuring that the referred candidates go through the same rigorous hiring process as other applicants maintains the integrity of the recruitment process.

Organizations can mitigate potential biases in employee referral programs by ensuring that referred candidates undergo the same screening and interview processes as other candidates. Additionally, providing training for employees on diversity and inclusion can help reduce biased referrals. It’s also beneficial to monitor the diversity of the applicants coming through the referral program and adjust strategies accordingly.

Employee referral programs can both help and hinder workplace diversity. While they can expedite the hiring of candidates from existing employees’ diverse networks, they can also perpetuate a lack of diversity if employees’ networks are not diverse. To counteract this, companies can encourage employees to refer candidates from varied backgrounds and may even offer additional incentives for referrals that enhance workplace diversity.


Faster hiring process

Reduces the time it takes to fill open positions by accessing pre-vetted candidates.

Cost efficiency

Lowers the cost per hire by reducing the need for extensive advertising and recruiting agency fees.

Improved employee morale

Enhances morale and team cohesion as employees contribute to the growth and success of their company.

High-Quality candidates

Increases the likelihood of getting high-quality candidates who fit well with the company culture.

Better retention rates

Typically leads to higher retention rates, as referred employees often have a realistic preview of the job through their referrer.

Wypróbuj HRnest za darmo

Zarejstruj się i testuj nasz system przez 30 dni bez zobowiązań!

HR glossary / E / Employer referral

Try out HRnest for free

Sign up and test our system for 14 days with no obligation!

Related articles

List of key terms and information related to the issue

See also