Employee Referrals: Proceed with Caution
If you are like many governmental managers, you are finding it difficult to find reliable and conscientious workers. You may have tried several sources without much success. Another possibility is to turn to your current employees – those workers who have already proved themselves over time – for assistance.
Action idea: Post a notice on the bulletin board or Web site encouraging your employees to refer potential candidates for positions within your organization. The inducement can be a cash award or some other incentive such as extra vacation days. By using this strategy, you may find your existing workforce to be a valuable resource for new job candidates.
However, don't go overboard with this technique. Make sure you observe all the legal formalities in this area. For instance, if the odds are stacked too heavily in favor of one group within your organization, you run the risk of a discrimination lawsuit. That was the issue presented in a recent case.
Facts of the case: The Equal Employment Opportunity Commission (EEOC) filed a complaint against an employer located in Illinois. The complaint alleged that the company denied employment to African-American applicants and that women were relegated to the lowest-paying jobs.
The employer had relied almost exclusively on job referrals from its workforce, which consisted mainly of men of Eastern European background. It also physically segregated the employment applicants of women and considered them only for packing line jobs. The salary increases for those jobs were historically lower than the raises paid to workers in other unskilled jobs.
Result: Ultimately, the employer recognized the error of its ways. It ended up paying $2.5 million to approximately 300 claimants and revamping its hiring practices.
Although this case involved a company in the for-profit sector, the same principles apply to governmentals. With that in mind, here are several suggestions that may help you defuse any future problems.
- Spread the word about job openings through other channels such as your Web site or newsletters.
- Limit job-hires by referral to a set percentage. Open up the referral process to the entire workforce.
- Don't take the easy way out. Compare credentials of referrals with other qualified job applicants.
- Encourage managers to resist peer pressure to hire someone simply because he or she is a friend or relative.
These simple precautions can be a significant benefit if your hiring practices come under examination.
Action idea: Whenever you are in doubt, consult with your business advisers, including legal counsel, for the implementation of nondiscriminatory hiring practices.
At Lewis, Hooper & Dick, LLC, we offer comprehensive services in human resources. Please contact David Lunzmann at (620) 275-9267.
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