Blake Construction Inc. is having a difficult time recruiting qualified external candidates. The manager of human resources suggests offering a $1,500 employee referral bonus, provided the candidate makes it past the sixmonth probationary period. One reason the creation of this referral program makes sense is that:
A) employees may want to suggest friends or family members, even if they are not qualified.
B) employees who make a referral have a vested interest in the new hire succeeding.
C) employees who are referred tend to perform better than the employees who referred them.
D) employees who are referred will have the same work ethic as the employee who made the referral.

Question

Blake Construction Inc. is having a difficult time recruiting qualified external candidates. The manager of human resources suggests offering a $1,500 employee referral bonus, provided the candidate makes it past the six­month probationary period. One reason the creation of this referral program makes sense is that:
A) employees may want to suggest friends or family members, even if they are not qualified.
B) employees who make a referral have a vested interest in the new hire succeeding.
C) employees who are referred tend to perform better than the employees who referred them.
D) employees who are referred will have the same work ethic as the employee who made the referral.

Quizplus · Accepted Answer

Offering an employee referral bonus ensures that current employees have a personal interest in recommending qualified candidates who they believe will be a good fit for the company. This increases the likelihood of a quality hire who will stay with the company longer. Additionally, the bonus is only provided after the candidate has passed the probationary period, which further incentivizes the referring employee to ensure their success.