Sustainable Talent Acquisition: Five Best Practices for Referral-based Hiring
Freiberg, T., Horak, S., & Bonchev, B. (2024).
Sustainable Talent Acquisition: Five Best Practices for Referral-based
Hiring. Mercer White Papers, Mercer, New York.
DOI: 10.13140/RG.2.2.36153.58726
Abstract
Sustainable talent acquisition (TA) through informal networks, such as employee
referrals, is widely regarded as an efficient and effective approach. While this
practice can save both time and money, it also has potential downsides.
Referral-based hiring can perpetuate homogeneity, reinforce biases, and
exacerbate inequality, among other negative consequences. Through interviews
with HR leaders and recruiters in the Greater New York City Metro Area, we gain
insights into the TA practices of various organizations. We find that many
organizations favor some level of referral-based hiring, often using it as a
primary recruitment tool. However, others are mindful of the potential for bias
and strive to minimize its use. Hiring through employee networks is a delicate
and potentially risky TA practice. Based on these interviews, we propose five
best practices for a sustainable approach to referral-based hiring.
Keywords
Talent Acquisition; Informal Networks; Best Practices; Sustainability;
Referral-Based Hiring; Environmental, Social, and Governance (ESG); Diversity,
Equity, Inclusion, and Belonging (DEIB).