Employee referrals are among the most popular method in finding new recruits, with studies saying that this method is responsible for up to 50% of new hires in some companies, and many human resources professionals suggesting that it leads to better worker retention rates. However, the drawback of employee referrals is that it can potentially create an environment that fosters nepotism [i.e., the practice among those with power or influence of favoring relatives or friends, especially by giving them jobs.]. With that in mind, how do we effectively use employee referrals for successful management?
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