If you know someone at a company or someone with a strong connection to a company, it can be helpful to mention them in your cover letter when you apply for a job. Having a referral can help you stand out from the crowd when you're job searching. Mentioning that you're referred by someone is like getting an employment reference in advance. Hiring managers and recruiters will likely take a closer look at candidates with whom they share a mutual contact, and for good reason: studies have shown that hiring through employee referrals results in faster, cheaper, more effective hiring than relying on job sites.
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