By Katie Kulp


How Bad Employment Referrals Can Affect Your Company

The importance of employment referrals should not be overlooked. While good employment referrals can help you land great employees, bad ones can take a serious toll on your company.


Here at Chane Solutions, we’ve seen companies struggle simply because of the types of employment referrals they’ve received. Let’s dive deeper into what an employment referral is and how bad employment referrals can affect your company. While accepting referrals from your current employees is a smart idea, making sure they are who they say they are is an important function of the background check process.


What is an Employment Referral?

Employment referrals occur when companies ask their current employees to recommend candidates from their existing social networks. It is a type of internal recruiting method that can help companies find qualified candidates without having to go to external sources.


Most companies offer their current employees rewards or incentives for recommending candidates. Unfortunately, some employees refer poor candidates that do not fit in with the company culture or are unable to perform their job responsibilities properly.


Top Reasons Bad Employment Referrals Can Hurt Your Company

While bad employment referrals may not seem like a big deal, they can hurt your company in a variety of ways. Avoid the following situations by performing a thorough background check on all candidates, including referrals.



Sometimes, the referring employee and new hire may form a clique because they know one another. This can cause other employees to complain about favoritism and hinder the team oriented culture at your company.


Overlooking Better Candidates

While it may be tempting to take your current employee’s word and hire someone they referred, you may be missing out on a more qualified employee you would’ve found through your own external efforts.



If your an employee takes the time to refer someone they know and speak highly of and you don’t hire them, they may feel that it reflects negatively on them. When this happens, there may be some tension between the referring employee and your company.


Losing Two Employees

In the event your referring employee or their referral decide to leave or gets fired, you may lose two employees. This is particularly true if both employees are close friends.


Contact Chane Solutions to Learn More About Employment Referrals

For tips on what you can do to prevent bad employment referrals, contact Chane Solutions, a quality employment screening and drug testing provider today.

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