What are the advantages and disadvantages of using employee referrals for recruiting?
What will be an ideal response?
Answer: Employee referrals continue to be the way that top performers are identified. It is just human nature that people do not want to recommend a person unless they believe they are going to fit in and be productive. Thus, it is a powerful recruiting tool. Costs associated with employee referrals are very low compared to advertising or agencies. Using referrals also reduces turnover among both new and existing employees because applicants come prescreened for culture fit. A note of caution should be observed with regard to the extensive use of employee referral. The EEOC Compliance Manual updates guidance on the prohibition of discrimination under Title VII of the Civil Rights Act of 1964. The manual explicitly warns that relying on word-of-mouth recruiting, which includes employee referral programs, may generate applicant pools that do not reflect diversity in the labor market.
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