Many companies use referrals by current employees as a source for new hiring and even monetarily reward them because
A) it is less expensive than the fees paid to headhunters.
B) current employees normally are careful in recommending someone due to their personal credibility.
C) current employees are careful in their recommendations and it is less expensive than paying headhunters.
D) it is a good test of employee loyalty.

Question

Quizplus · Accepted Answer

GE Medical Systems offers a monetary reward for referrals, but it is peanuts compared to the fees that it typically pays to headhunters for each person hired. When someone refers a former colleague or friend for a job, his or her credibility is on the line. Thus, employees will be careful in recommending people for employment, unless they are reasonably confident that these people are good candidates.

Many Companies Use Referrals by Current Employees as a Source