The data propounds that during a job interview what counts is not how much you know about the subject , but how much you know about the top management. Research suggests ( read below ) why companies dont need the 'perfect candidate, and the reason is well documented " people would want to have someone like themselves.with a similar social and cultural background. And that us just a few of the reason why they prefer to take in people from employee referrals.
Research has shown referrals stick around longer and are more productive as compared to non referred friend ( Harvard research paper )
The New York Times recently ran a story on increasing use of internal referrals by the technology companies which showed that around 47% of hiring ( for non entry level positions ) in Ernst & Young and Deloitte came from employee referrals
Although internal employee referrals only made up about 6% of total applications, they resulted in more than a quarter of hires..Not only that, but even a candidate coming through referrals has even 40% higher chances of being offered the letter ..
So what are the advantages of employee referrals that makes it such an obvious choice for headhunters and HR ?
1) saves the costs associated in publishing job ads across print and online
2)For niche jobs.. the captive base of skilled workers is low and the referral medium offers the right mix of talent
3) employees who come in via the referral channel tend to stay longer in the organization
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