Employee referrals can aid hiring but carry hidden downsides. New research by Rellie Derfler-Rozin at the University of Maryland's Robert H. Smith School of Business and Teodora Tomova Shakur of Texas Christian University finds that staff often see referred hires as less meritorious and offer less support, even when the referred employees demonstrate high performance. Their study, published in the Journal of Applied Psychology, recommends clear communication about hiring rigor and employee involvement to counter these biased perceptions.
