Discuss the pros and cons of referral bonuses


Response to the following:

Some companies pay current employees a referral bonus if a job candidate that the employee referred is hired by the company. What do you think of this practice? Do you think that it is a good idea? Will it create resentment toward the company if an employee refers someone who is not hired? Why? Discuss the pros and cons of such referral bonuses. Would you recommend that companies use this type of bonus? What kinds of restrictions should be placed on the program if you recommend it?

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