{"id":5317,"date":"2009-04-06T12:29:34","date_gmt":"2009-04-06T11:29:34","guid":{"rendered":"http:\/\/www.corporate-eye.com\/?p=5317"},"modified":"2019-12-17T19:58:49","modified_gmt":"2019-12-17T18:58:49","slug":"circular-motion-two-views-of-employee-referral","status":"publish","type":"post","link":"https:\/\/www.corporate-eye.com\/main\/circular-motion-two-views-of-employee-referral\/","title":{"rendered":"Circular Motion: Two Views of Employee Referral"},"content":{"rendered":"
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Conventional wisdom says:<\/em> Employee referral programs are an excellent source of high-quality, low-cost hires.<\/p>\n

Leigh Buchanan says:<\/em> Not so fast there, buckaroo.<\/p>\n

Or words to that effect. The funny and insightful Buchanan, an editor-at-large for Inc.<\/em>, asks a good question in the March issue:\u00a0 Is Your Company Inbred<\/a>?<\/p>\n

And though she acknowledges the advantages of employee referrals, she also points out that:<\/p>\n

Biodiversity is one sign of a healthy ecosystem; mutts tend to be sturdier than purebreds. Companies that hire lots of people who know one another\u2014because they attended the same schools or play golf together every weekend or used to work together someplace else\u2014may reduce the diversity of their workforces’ experiences and perspectives.<\/div>\n

This particular concern is probably more of a danger for small to mid-size companies than for giant corporations. But it might actually be most<\/em> hazardous in specialized departments of large companies, where cliqueishness can take root easily.\u00a0 And there are other potential issues as well, so it’s worth taking a look at both sides of the referral coin.<\/p>\n

Employee referral programs have the power to create \u201cvirtuous circles,\u201d where well-chosen employees provide links to other good employees, and the effect builds. Ideally, the circle develops and sustains itself because . . .<\/p>\n