Referral Recruitment
Get Referral Recruitment essential facts below. View Videos or join the Referral Recruitment discussion. Add Referral Recruitment to your topic list for future reference or share this resource on social media.
Referral Recruitment

Referral recruitment is a recruitment strategy that encourages employees to refer contacts for specific positions. It performs better than regular recruiting:

  1. Recruiting through 3rd-party recruiting agencies incurs a 20-25% agency finder's fee - which can top $25K for an employee with $100K annual salary. Referral recruiting can be free (or cost a fraction)[1]
  2. Candidates hired through referrals tend to stay up to 3X longer than candidates hired through job boards and other.[2]
  3. Employees whose contacts are hired tend to stay much longer, helping with overall employee retention.

There are disadvantages to putting too much emphasis on referral schemes, such as reduced workforce diversity and unfairness regarding other prospective candidates.[3] To combat these disadvantages some companies are opening up their referral schemes to external contributors. Not only does this help to combat the aforementioned issues, but it also increases the size of the network of potential referrers.

Referral recruitment program

Referral recruitment programs[4] rely on the principle of co-option while allowing people in the company referral network including employees to refer candidates to fill job openings. Online, they can be implemented by leveraging social networks like LinkedIn, Facebook, Google+, etc.

Some companies offer cash incentives or other perks for when successful hires are made by the company through this program.


  1. ^ Basu, Shatabdi (2016-11-09). "Does referral recruiting really work?". CareerBot. Retrieved . 
  2. ^ "Chatbot to Accelerate Referral Recruiting - CareerBot". CareerBot. Retrieved . 
  3. ^ Government, UK. "Employee Referral Schemes". Employee Referral Schemes. Department for Business Innovation and Skills. Retrieved 2011. [permanent dead link]
  4. ^ "MyJobCompany - Chasseur de tête. Recrutement participatif - Cooptation". 

  This article uses material from the Wikipedia page available here. It is released under the Creative Commons Attribution-Share-Alike License 3.0.



Top US Cities was developed using's knowledge management platform. It allows users to manage learning and research. Visit defaultLogic's other partner sites below: : Music Genres | Musicians | Musical Instruments | Music Industry
NCR Works : Retail Banking | Restaurant Industry | Retail Industry | Hospitality Industry