* Understanding of Job Requirements: Employee referrals typically yield applicants who have a better understanding of the job opening and what it entails because the referring employee can provide detailed information about the role and the company culture.
* Quality of Candidates: Referred candidates are often of higher quality because employees are unlikely to refer someone who they do not believe will perform well or fit into the company culture.
* Engagement and Retention: Referred employees tend to be more engaged and have higher retention rates as they have a built-in connection within the company and a clearer expectation of the job.
* Cost-Effectiveness: Employee referral programs are generally more cost-effective compared to other recruitment methods as they reduce the need for extensive advertising and third-party recruiting fees.
References:
* SHRM-SCP Exam Content Outline
* SHRM guidelines on recruitment methods and employee referral programs