Referral Programs are Usually Positive! But What Are the Negatives?

Employee referral programs offer many benefits for your recruitment process. You can find new workers quickly and easily, and can get an impression of the quality of these potential new hires. But if you’re considering an employee referral program to source new candidates, it’s also a good idea to weigh the possible drawbacks of these programs.

Three Negative Outcomes of Employee Referral Programs

Though you hope (and plan!) for the best, sometimes things don’t turn out quite as you expect. So before adding an employee referral program, review these potential disadvantages, as presented by one of the top temp agencies in Atlanta GA—Happy Faces Personnel Group.

Hard Feelings

If one of your staff has suggested a possible new hire and you’ve brought them on board, it will be obvious to your other workers. This is especially true if the referred employee joins the same department as the person who referred them. This can create the impression of favoritism, and subsequent hard feelings and resentment.

Decreased Diversity

People often have the same interests and beliefs as their friends. So when you hire candidates that employees have referred to you, there’s the potential for a breakdown in diverse ideas in your workplace. The range of new ideas may be stifled, and this can be bad for innovation.

Possible Poor Hiring Choices

In an ideal situation, highly skilled talent will refer other high-quality individuals. But when that doesn’t happen, you run the risk of a new hire who simply won’t work out at your company. This can create unnecessary stress for the rest of your staff, your HR department, and yourself.

Diversify Your Hiring Strategy

Employee referral programs work, but they shouldn’t be your entire hiring strategy. It can help to use a few methods in order to find the best and brightest in your field.

Looking for a Staffing Partner?

In your search for new employees, a staffing agency is another way to find, hire, train and retain skilled, experienced workers. If you’re an employer in the Atlanta Metropolitan Area in search of new staff, check out Happy Faces Personnel Group! Our specialty is placing the right candidates with the right opportunities—and we’ll work with you to understand your unique staffing needs. To learn more, contact us today to speak with an experienced recruiter.



Leave a Reply

  • (will not be published)