What is a likely outcome when a company relies on employee referrals for job applicants?

When a company relies on employee referrals for job applicants, one likely outcome is that employees may refer individuals with strong performance potential. This stems from the fact that employees typically understand the company culture, the requirements of the job, and what constitutes a successful employee within the organization. As a result, they are likely to recommend people they believe would be a good fit and have the skills necessary to perform well in the role.

Moreover, employees often have insights into the capabilities of their acquaintances and may be inclined to refer those they trust, which enhances the quality of the candidate pool. This practice can lead to higher retention rates and potentially improve the overall performance of new hires, as they come with a pre-established endorsement from current employees.

In contrasting scenarios, relying on employee referrals may not necessarily foster a diverse applicant pool, as employees are likely to refer individuals within their own networks, which may share similar backgrounds and experiences. As such, a diverse range of perspectives and experiences might be overlooked. Additionally, the hiring process can often be expedited with referrals, considering trusted recommendations might fast-track candidates through initial screening procedures. Therefore, while referring strong candidates is a distinct advantage of this hiring method, it may come with the challenges of limited diversity and potentially longer hiring times