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The Empuls Glossary

Glossary of Human Resources Management and Employee Benefit Terms

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Employee referrals refer to the process of current employees recommending or referring potential candidates for job openings within their organization. This method leverages the personal and professional networks of existing employees to identify qualified individuals who may not be reached through traditional recruitment channels. 

What is an employee referral?

An employee referral is a recruitment method in which current employees of a company recommend or refer candidates for open positions within the organization. These candidates are typically individuals known personally or professionally by the referring employee.

Employee referrals typically involve the referring employee submitting the candidate's resume or application to the company's HR department or hiring manager, often accompanied by a recommendation or endorsement of the candidate's qualifications and fit for the position. Employee referrals are valued by companies for their ability to attract high-quality candidates who are more likely to succeed and integrate well into the company culture, leading to higher retention rates and overall workforce satisfaction.

What does employee referral mean?

Employee referral refers to the process of recommending or suggesting potential candidates for job openings within a company. It involves leveraging the network of existing employees to identify and attract qualified candidates.

What does an employee referral mean?

An employee referral signifies a recommendation made by an existing employee of a company for a potential candidate to fill a vacant position within the organization. It reflects the confidence of the referring employee in the abilities and suitability of the candidate for the role.

Listen, recognize, award, and retain your employees with our Employee engagement software  

What is an advantage of using employee referral campaigns?

Employee referral campaigns offer several advantages, including:

  1. Access to a broader talent pool: Employees can tap into their personal and professional networks to identify qualified candidates who may not be reached through traditional recruitment channels.
  2. Higher-quality candidates: Referred candidates often possess a better cultural fit and understanding of the company's values and expectations, leading to higher retention rates and job satisfaction.
  3. Cost-effectiveness: Compared to other recruiting methods, employee referrals tend to be more cost-effective as they reduce reliance on expensive external recruitment agencies and advertising.
  4. Faster hiring process: Referrals typically result in shorter recruitment cycles as referred candidates are pre-screened and vetted by the referring employee, accelerating the hiring process.

What is an employee referral program?

An employee referral program is a formalized system or initiative implemented by a company to encourage and facilitate employee referrals. It includes guidelines, incentives, and mechanisms for employees to recommend qualified candidates for job openings within the organization.

Do employee referrals work?

Yes, employee referrals are generally effective in sourcing and hiring qualified candidates. Studies have shown that referred candidates tend to have higher retention rates, perform better, and integrate more smoothly into the company culture compared to candidates hired through other means. Additionally, employee referrals often result in a faster and more cost-effective hiring process.

Is employee referral better?

Employee referral can be considered better in many cases due to the numerous benefits it offers, such as access to a wider talent pool, higher-quality candidates, cost-effectiveness, and faster hiring. However, it's essential to complement employee referrals with other recruitment strategies to ensure diversity and inclusivity in the hiring process.

What are the 3 types of referral?

The three main types of referral are:

  • Employee referral: Referrals made by current employees of a company for potential candidates.
  • Customer referral: Referrals made by existing customers of a business to recommend new customers or clients.
  • Professional referral: Referrals made by professionals within the same industry or network to recommend individuals for job opportunities, partnerships, or collaborations.

How to ask for employee referrals?

To ask for employee referrals effectively, a company can implement several strategies:

  • Communicate the availability of job openings to employees through internal channels such as email, newsletters, or meetings.
  • Clearly outline the desired qualifications and job requirements to help employees identify suitable candidates.
  • Encourage employees to refer qualified candidates by offering incentives such as referral bonuses, recognition, or other rewards.
  • Provide employees with tools or resources to easily share job postings with their networks, such as referral portals or social media sharing options.
  • Foster a culture of collaboration and teamwork where employees feel motivated and empowered to recommend candidates.

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.


eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.

Based on the responses, employees can be placed in three different categories:

  • Promoters
    Employees who have responded positively or agreed.
  • Detractors
    Employees who have reacted negatively or disagreed.
  • Passives
    Employees who have stayed neutral with their responses.

Who is a referral person?

A referral person is an individual who provides recommendations or suggestions for other individuals, products, services, or opportunities. This can include employees referring candidates for job openings, customers referring new clients or customers to a business, or professionals recommending individuals for various purposes within their network. Referral persons play a crucial role in networking, recruitment, and business development efforts.

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