Why is it more likely that employee referral programs are effective and successful?
A)Employees who refer applicants are given a reward.
B)Applicants hired through this method lower high turnover.
C)Employees generally provide accurate information about referrals.
D)Heterogeneity of a firm is affected positively by this method.

Question

Quizplus · Accepted Answer

Employee referral programs are more likely to be effective and successful because referrals made by employees tend to have a higher retention rate compared to those made through other methods. When employees refer someone they know, they are likely to provide accurate information about the job and the company culture, increasing the likelihood that the referral would be a good fit. This can lead to lower turnover rates, which serves as a cost savings for the company. Consequently, this will help to improve the company's efficiency, thereby contributing to its success.

Why Is It More Likely That Employee Referral Programs Are