What Do Employee Referral Programs Do Article Swipe
Employee referral programs (ERPs) are randomly introduced in a grocery chain. Larger bonuses increase referrals and decrease referral quality, though the increase in referrals is modest. Still, ERPs are highly profitable, partly, because referrals stay longer than non-referrals, but, mainly, because non-referrals stay longer in treated stores than in control stores. In a post-RCT firmwide ERP rollout, referral rates remain low for grocery jobs, but are high for non-grocery jobs, which are perceived as more attractive. Our results (1) are consistent with referral-making being driven by money and altruism toward friends; (2) show that ERPs can have substantial benefits beyond generating referrals. The most-supported mechanism for (2) is that workers value being involved in hiring.
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What Do Employee Referral Programs DoWork title
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preprintOpenAlex work type
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enPrimary language
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2019Year of publication
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2019-05-01Full publication date if available
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Guido Friebel, Matthias Heinz, Mitchell Hoffman, Nick ZubanovList of authors in order
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https://EconPapers.repec.org/RePEc:cpr:ceprdp:13770Publisher landing page
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greenOpen access status per OpenAlex
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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3401857Direct OA link when available
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Referral, Altruism (biology), Quality (philosophy), Control (management), Business, Psychology, Medicine, Family medicine, Social psychology, Economics, Management, Philosophy, EpistemologyTop concepts (fields/topics) attached by OpenAlex
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0Total citation count in OpenAlex
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