Question

in the context of employee recruitment, which of the following statements is true of employee - referral programs?
a. they lead to workforce diversity.
b. they correlate to low levels of shareholder returns.
c. they are a source of internal recruitment.
d. they represent a real bargain for employers.

Explanation:

Employee - referral programs are cost - effective. Employers save on recruitment costs like advertising. Referrals often have better cultural fit as current employees know the company culture. They also tend to have lower turnover rates as referred employees may feel more connected (due to the referrer's influence). So, they are a good deal (a real bargain) for employers.

• Option a: Employee - referral programs may not necessarily lead to workforce diversity as employees may refer people from similar backgrounds.
• Option b: There is no direct correlation between employee - referral programs and low shareholder returns. In fact, they can be beneficial for the company's overall performance (which could positively impact shareholder returns).
• Option c: Employee - referral programs are a form of external recruitment as the referred employees are not already part of the internal workforce (unless it's a re - hire situation, but generally, they are new hires from outside the current internal pool).

Answer:

d. They represent a real bargain for employers.