Do you rely too much on staff referrals? Beware legal risk

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in Employment Background Check,Hiring,Human Resources

Issue: Employees tend to refer people with similar characteristics to themselves.

Risk: Overrelying on employee referrals can create a homogeneous work force and spark discrimination complaints.

Action: Limit referrals to 40 percent of your new hires, and follow these other seven tips for a legally safe referral program.

Employee-referral programs can be a reliable, inexpensive way to find great talent. But you probably don't realize that they carry a hidden legal risk, too.

As recent court rulings have shown, relying too much on employee referrals can place your organization at risk of a hiring-discrimination charge. Why? Employees tend to refer people like themselves, which may eliminate any chance of work force diversity. Consider these two examples:

Case 1: Carl Buddig & Co., a meat processing company, agreed to pay $2.5 million and change its hiring practices to end a two-year spat with the EEOC. Th...(register to read more)

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