Definition
An initiative offering bonuses or incentives to employees who refer external candidates who are hired. It's basically paying your staff to bring their friends into the workplace.
Example Usage
Our $5,000 referral bonus resulted in mostly unqualified candidates from employees' network, plus resentment from qualified external applicants who applied without a hook.
Origin
Became popular in the 1990s as a cost-effective recruitment strategy, particularly in tech.
Fun Fact
Referral hires have 25% higher retention and 15% better performance, likely because employees screen candidates harder when their reputation is on the line.
Source: Recruitment Strategies
Related Terms
Translate This Term
See “Referral Program” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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