Final answer:
GoodSpeak Telecommunications provides cash bonuses to employees who refer individuals who are then hired by the company, an example of an employee referral program. This strategy is commonly used as it capitalizes on the networks of current employees and is well-received because it increases employees' earnings for their contributions to the hiring process.
Step-by-step explanation:
At GoodSpeak Telecommunications, the practice of providing a cash bonus to employees for submitting names of individuals who later become employees is an example of an employee referral program. This program is a recruitment innovation that leverages the existing workforce to find new hires. It's popular with economists and the general public, as it effectively increases income for employees, by offering them a financial incentive for contributing to the company's hiring process.
Employee referral programs can enhance recruitment efforts, as they build upon the trust and networks of current employees. Companies use these programs because referred employees are often a better fit for the organization, given the pre-existing endorsement by present staff.
Such recruitment strategies are a win-win for both employers and employees. The referring employee receives a bonus, contributing to higher employee satisfaction and potentially higher retention rates. Simultaneously, employers gain access to a broader pool of potential candidates who might not be reached through traditional advertising and recruiting methods.