The Good, The Bad, and The Ugly of Hiring Referrals
Read Time: 3 Minutes
Table of Contents
We hear it all the time, ‘It’s who you know’. When it comes to getting a job or hiring your next employee there seems to be nothing as powerful as a referral from a trusted source.
Oftentimes, a referral is so influential it leads employers to overlook more qualified candidates in favour of the familiar ‘vetted’ choice.
We say ‘vetted’ as this is a bit of a false assumption. Just because someone knows the candidate doesn’t mean their assessment of them is unbiased.
Although it might seem like the referee is at fault if the hire doesn’t work out, the responsibility ultimately falls on you, the employer.
The Good:
Let’s start with the obvious: referrals can be a fantastic way to find quality candidates.
When a high-performing employee vouches for someone, there’s a good chance they share similar values, work ethic, and qualities.
Assuming the referral turns out to be the right choice you can expect some great benefits associated with hiring them.
It usually leads to a quick hire, getting someone in the role right away, so the company can start making money again, while also bringing another like-minded individual into the team.
So why wouldn’t you want to hire a referral?
The Bad:
Here’s where things get tricky. Referrals are often granted special treatment when being hired.
They may skip important stages of the hiring process that normal applicants must pass through, and they may not be viewed as critically when being interviewed or assessing references.
Here are some important things to note when you are considering hiring a referral.
The Bias of Referrals
This is one of the biggest risks employers take when hiring a referral.
Are they truly qualified or does your referring employee simply like the person?
Let’s face it: people tend to see their friends, colleagues, and family members in an overly flattering way.
Having someone vouch for a candidate gives a false sense of security that the person is a safe choice. But you as the employer are receiving a very one-sided assessment of the referral’s abilities.
That’s why it’s critical to put every candidate—referral or not—through the same rigorous process.
No internal influence should affect your assessment of the referral’s personality, skills, and experience.
Remember, referrals can be guaranteed an opportunity but should never be guaranteed a job.
Overlooking Better Candidates
Aside from professional recruiters, most people don’t enjoy hiring. it is stressful, time-consuming, and the responsibility of a bad hire falls on your shoulders.
When someone comes to you with a referral it’s often seen as an easy way out.
While it may be easier, it won’t always lead to the best result.
There are many qualified candidates out there looking for work and if you settle for the first resume that comes across your desk, you will miss out on some truly incredible individuals.
Don’t let referrals be your only source of candidates, instead use them as a supplement to your typical recruitment channels.
Inter-Team Drama
Another issue with referrals is the potential for personal and professional lines to blur.
Referrals are often friends and family, which means things that happen outside of work may affect productivity within the business.
Unfortunately, you won’t be able to manage these relationships the same way you manage other strictly professional ones within your team. You lose an element of control in this situation.
Relaxing Your Hiring Process
You’ve spent years – maybe even decades – fine-tuning your hiring process to ensure you’re making the best possible decisions. So why would you relax these standards for a referral?
It’s tempting to fast-track someone who comes with a glowing recommendation, but skipping important steps in your process can lead to problems down the road.
A well-established hiring process is there for a reason: it helps you make fair, unbiased, and informed hiring decisions with a focus on serving the best interest of the company.
When you let a referral bypass parts of that process, you’re not just giving them an unfair advantage – you’re also risking bringing in someone who may not actually be the best fit for the role.
To Wrap Up
Conclusion
At the end of the day, referrals can be a great way to discover potential talent, but they should be treated like any other candidate.
As we’ve said, a referral should be guaranteed an opportunity, not a job. By putting them through the same rigorous hiring process as everyone else, you ensure that every candidate is evaluated fairly and without bias.
At About Staffing, clients often request that referrals go through our full screening process alongside the candidates we source. This allows for an unbiased, third-party evaluation – ensuring that referrals are given a fair chance, without the influence of internal relationships.
Employers usually prefer this as they don’t need to be viewed as the ‘bad guy’ if the referral ends up not being selected. About Staffing handles the rejection and takes the blame, and your relationship with the referring employee remains unstrained.
Ultimately, it’s not about who you know—it’s about finding the best person for the job. By treating referrals as just one piece of your recruitment strategy, you’ll avoid missing out on other great candidates and protect your company from potential hiring missteps.
The key is balance: leverage referrals, but don’t rely on them. Trust an established hiring process, and you’ll build the best team for your business.
Read More
Frequently Asked Questions
What are some potential downsides of relying on referrals?
While referrals can bring in strong candidates, they can also limit diversity in perspectives and experiences. Relying heavily on referrals may also discourage external talent from applying, so it’s best to balance referrals with open recruiting efforts.
How can I avoid favouritism when hiring referrals?
To keep the process fair, evaluate referral candidates using the same criteria as all other applicants. Consistent evaluation helps ensure that the most qualified candidate is selected, fostering a more objective hiring environment.