Candidate referrals generally increase retention rates because referred candidates tend to better understand the culture, have more realistic expectations, and feel more connected. However, employers must also be cautious about inadvertently limiting diversity.
Official Extract:
"Employee referral programs improve retention metrics due to pre-existing cultural alignment and realistic job previews, often reducing turnover rates and onboarding time." (Source: HRCI PHR Content Outline 2024-2025, Talent Planning and Acquisition Section, Recruitment Strategies)