An employee referral is essentially an endorsement within a potential employer of you and your talents for a specific position. A person you know, such as an old colleague or former classmate, at the company is usually the one to offer the referral.
The referral can be informal — when a connection simply passes your name on to a recruiter or hiring manager as a good candidate. A referral can also be part of a formal program at a potential employer that awards the current employee if their candidate is ultimately hired. Read more via Linkedin