# What is an Employee Referral Programme?

A referral programme rewards staff for recommending candidates. SMEs use it to reduce hiring costs and find cultural fits.

Source: https://faqtic.co/glossary/referral-programme

## Why it Matters for SMEs

- Reduces costs
- Improves hires
- Engages staff

## Example in Practice

Factorial ATS tracks referral candidates.

## Frequently Asked Questions

### Why effective?

Employees know good fits.

### Reward options?

Cash, vouchers, recognition.

### Risks?

Reduced diversity if unmanaged.

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Canonical HTML: https://faqtic.co/glossary/referral-programme