Which of the following statements is true about referrals?
A) Referrals fall under the category of internal sources of recruitment.
B) The use of referrals tends to increase the likelihood of exposing an organization to different viewpoints.
C) The use of referrals tends to promote nepotism.
D) Referrals cost much more than other formal recruiting efforts.
E) Referrals are the least preferred sources of new hires.

Question

Quizplus · Accepted Answer

Referrals fall under the category of external source of recruitment. Referrals and direct applications cost much less than formal recruiting efforts and are among the best sources of new hires. The major downside of referrals is that they limit the likelihood of exposing an organization to different viewpoints. Furthermore, sometimes referrals contribute to hiring practices that are or that appear unfair, an example being nepotism, or the hiring of relatives.

Which of the Following Statements Is True About Referrals