Many employers have referral bonuses in place to recruit new employees -- if you refer a new hire to the company, you get a bonus. That person's performance reflects on you, though, so don't go referring everyone you know.
small>Photo by Julija Rauluševičiūtė
Aol Jobs recommends thinking carefully before you refer someone:
Here's why: What if a candidate whom you suggest the company interview and strongly consider is weak, unprepared and unprofessional? This will reflect badly on you. It may be tempting to blindly submit a candidate on your behalf if there's a compensation payout involved, but bad hires do occur, and some new hires many not even last as long as the 90 days required for some of these payouts.
Check the link for other considerations when you refer someone to work at your company.
When Bad Referrals Happen to Good People [Aol Jobs]