One disadvantage of employee referrals is that they may lead to discrimination and inbreeding.

Question

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Employee referrals may lead to discrimination if the referring employees only recommend people they know or who are similar to them, leading to a lack of diversity in the workplace. Inbreeding may also occur if too many employees are hired through referrals, leading to a concentration of certain social networks or personal relationships within the company.

One Disadvantage of Employee Referrals Is That They May Lead