What Do Employee Referral Programs Do? Measuring the Direct and Overall Effects of a Management Practice

Friebel, Guido; Heinz, Matthias; Hoffman, Mitchell; Zubanov, Nick

doi:10.3386/w25920

Cited by 6 publications

(5 citation statements)

References 44 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A study by Brown et al (2016) concluded that the employee referral recruitment process could be done quickly; prospective employees already have sufficient information about the company and are likely to be hired for an extended period. Other research conducted by (Friebel et al, 2019) mentioned that the employee referral model would contribute to cost efficiency and avoid conflicts in the workplace.…”

Section: Relationship Between Employees and Business Ownersmentioning

confidence: 99%

Employee Retention in Small and Medium Enterprises Export Potential

2022

Economics and Finance

View full text Add to dashboard Cite

This study aims to determine the relationship between MSMEs and their employees, including employee retention and intention to stay in MSMEs that have export potential. Companies that have an export orientation will always try to increase human resource capacity. Meanwhile, the capacity of MSMEs human resources is very minimal. This study uses a qualitative approach. This research examines UD Arif Jaya in Gresik Regency. Data collection uses in-depth interviews with owners and employees as well as triangulation between the two for the validity of the data. The results of this study indicate that geographical proximity makes emotional connection a consideration for companies in recruiting employees to ensure trust. Compensation-based retention patterns are still the main factor with various models; reciprocity, this is also a consideration for employees to stay. In addition to retention, employees consider family factors, time flexibility, and efficiency as the basis for survival. The pattern of employee recruitment and retention makes the company sustainable, especially in its production cycle. However, problems often arise in developing human resources to maintain the quality of export products. Opportunities to develop studies are still open to identify the existence of social capital as a background for relations in MSMEs.

show abstract

Section: Relationship Between Employees and Business Ownersmentioning

confidence: 99%

Employee Retention in Small and Medium Enterprises Export Potential

2022

Economics and Finance

View full text Add to dashboard Cite

show abstract

“…First, a number of recent papers have exploited the availability of panel data and more sophisticated identification strategies to estimate the direct effects of referrals, including Bayer et al (2008), Kramarz and Skans (2014), Schmutte (2015), Dustmann et al (2016), Gee et al (2017), andHeath (2018). Alternatively, a number of papers have used experimental settings to generate exogenous variation in the use of referrals; see, e.g., Bandiera et al (2009), Beaman and Magruder (2012), Pallais andSands (2016), andFriebel et al (2019).…”

Section: Related Literaturementioning

confidence: 99%

The Heterogeneous Impact of Referrals on Labor Market Outcomes

2021

View full text Add to dashboard Cite

We document a new set of facts regarding the impact of referrals on labor market outcomes. Our results highlight the importance of distinguishing between different types of referrals-those from family and friends and those from business contacts-and different occupations. Then we develop an on-the-job search model that incorporates referrals and calibrate the model to key moments in the data. The calibrated model yields new insights into the roles played by different types of referrals in the match formation process, and provides quantitative estimates of the effects of referrals on employment, earnings, output, and inequality.

show abstract

“…Both papers investigate why referred workers may be more productive than non‐referred workers. In more recent work, Friebel et al (2019) conduct an experiment in a large European grocery chain. By exploiting the variation in the referral programs launched across stores, they assess the value of an employee referral program for the firm.…”

Section: Related Literaturementioning

confidence: 99%

Monetary rewards in employee referral programs

Ekinci

2021

The Manchester School

View full text Add to dashboard Cite

This paper examines the conditions under which employee referrals serve as a screening function when there is a conflict of interest between the firm and the current employees concerning referral recruitment. In particular, I consider two potential mechanisms that lead to a conflict of interest: the employee’s social connection with the applicant and her promotion prospects. Specifically, I posit that the employee will have an incentive to refer low‐ability applicants if she has a strong social connection with them or if she faces the possibility of competing against her own referral to earn a promotion at the firm. Taking these potential sources for conflicting interests, I investigate the extent to which the firm can make use of financial incentives (fixed fees and bonuses) to align incentives of the employee with those of the firm.

show abstract

What Do Employee Referral Programs Do? Measuring the Direct and Overall Effects of a Management Practice

Cited by 6 publications

References 44 publications

Employee Retention in Small and Medium Enterprises Export Potential

Employee Retention in Small and Medium Enterprises Export Potential

The Heterogeneous Impact of Referrals on Labor Market Outcomes

Monetary rewards in employee referral programs

Contact Info

Product

Resources

About