Business owners and managers prefer to hire people who are referred to them personally

Business · Middle School · Thu Feb 04 2021

Answered on

 Business owners and managers often prefer to hire people who come through personal referrals for several reasons:

1. Trust and Reliability: A referral comes with a level of pre-established trust. If someone they know and respect suggests a candidate, the employer may believe that the candidate is likely to be reliable and trustworthy.

2. Cultural Fit: A person who comes recommended by someone already involved with the business is thought to be more likely to fit well with the company culture.

3. Reduced Hiring Risk: Hiring is a risk-taking process. When someone comes highly recommended, it reduces the perceived risk associated with hiring a new person.

4. Saves Time and Resources: It can be both time-consuming and expensive to advertise jobs, screen resumes, and interview candidates. A personal referral can speed up this process and potentially reduce hiring costs.

5. Proven Track Record: Referrals often come with a history or background check from the person doing the referring. This means the candidate may have a proven track record or specific accomplishments that make them stand out.

6. Lower Turnover: Studies have shown that employees who have been referred tend to stay longer at a company, leading to lower turnover rates which can save the company money and resources in the long run.

While personal referrals can be beneficial, it's also important for business owners and managers to ensure that they maintain a fair and inclusive hiring process and do not rely solely on referrals, which can lead to a lack of diversity and potentially overlook highly qualified candidates.