SHRM Talent Acquisition Practice Test

Referrals are primarily recognized as a key source of new hires for companies due to several important factors. When current employees refer candidates, it often leads to higher quality hires. This is largely because employees tend to refer individuals they believe would fit well with the company culture and possess the necessary skills, resulting in a better alignment between the job requirements and the applicants.

Moreover, referred candidates typically have a higher retention rate and are more likely to be satisfied with their jobs. This phenomenon can be attributed to the fact that they already have some understanding of the company from their referring colleague, which can help in setting realistic expectations about the role and workplace culture.

Additionally, the recruitment process can be faster and more efficient when using referrals, as these candidates might require less vetting than those sourced through other channels. Employees often feel a sense of ownership in the hiring process, as their reputation is at stake when they recommend someone, and this can lead to better engagement and commitment from both the referred candidate and the company.

In contrast to referrals, other sources like online job portals, social media campaigns, and recruitment agencies can also be effective but may not yield the same level of fit or engagement as referred candidates. These methods often result in a larger but less targeted pool, which