The Society for Human Resource Management (SHRM) defines a referral program as “a recruiting strategy in which employers encourage current employees, through rewards, to refer qualified candidates for jobs in their organizations.” To put it simply, you reward your existing employees when they recommend someone who would be a good fit within your organization. And that someone could be the employee’s friend, family member, former colleague, or acquaintance.
The reward that the current employee gets can take many forms. It could, for example, be a small bonus, additional time off, or a gift.