# What is an Employee Referral Program?

An employee referral program encourages staff to recommend candidates for open roles. SMEs use it to tap into networks, reduce hiring costs, and find better cultural fits. Incentives like bonuses or recognition improve participation.

Source: https://faqtic.co/glossary/employee-referral-program

## Why it Matters for SMEs

- Reduces costs
- Improves quality of hire
- Boosts engagement

## Example in Practice

HR tracks referrals and rewards in Factorial.

## Frequently Asked Questions

### Why use referrals?

They bring trusted candidates.

### Incentivise?

Yes, with bonuses or recognition.

### Track in HR tools?

Yes, via recruitment modules.

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