More than a third of U.S. workers landed their current job via an employee referral. In a tight talent market, it’s tempting for organizations to rely even more heavily on employee referrals to fill open positions, but a new study from PayScale shows that doing so could lead to pay inequities and a less-diverse workforce.
How to Use Employee Referrals Without Giving Up Workplace Diversity
Incentivize employees to refer more women and people of color.
March 15, 2018
Summary.
More than a third of U.S. workers landed their current job via an employee referral. In a tight talent market, it’s tempting for organizations to rely even more heavily on employee referrals to fill open positions; in addition, employees referred to companies report higher levels of engagement. At the same time, research shows referrals can lead to pay inequities and a less-diverse workforce. So how can companies take advantage of the positive effects while minimizing the negative ones? Start by gathering an analyzing your company’s data on talent sourcing and incentivizing employees to refer more women and people of color.
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HBR Learning
Attracting and Cultivating Talent Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Attracting and Cultivating Talent. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Discover how to attract, hire, develop, and keep talented people who will grow and thrive throughout their employee journey.