A referral scheme lets staff put forward people they know for open roles, usually through the ATS or a simple form, with a bonus paid if the hire passes probation. Referred candidates often arrive with a realistic picture of the job and the team, which can help them settle in. Some schemes add a short note from the referrer explaining how they know the candidate and why they suggested them.
Referrals are valuable, but a workforce that hires mainly through its own networks tends to reproduce its current make-up. Balancing referrals with open advertising, putting referred candidates through the same screening and scoring as everyone else and tracking source of hire alongside outcomes keeps the channel useful without giving it an unfair edge.