What does the term "employee referral" mean?

The term "employee referral" refers to a suggestion from a current employee about a potential candidate for a job opening within the same company. This practice leverages the existing employees' networks and insights about potential candidates, which can lead to more effective hiring. Employees who refer candidates often have a better understanding of the company culture and the specific qualifications that are likely to succeed in their organization. This can also enhance the quality of hires, as referred candidates may come with a built-in level of credibility and trustworthiness. Employee referral programs are popular among organizations because they can improve the speed and efficiency of the recruitment process, reduce hiring costs, and often lead to higher retention rates among referred employees.