In this episode of Hiring & Firing with Fexingo, Lucas and Luna explore the unintended consequences of a referral bonus program at a mid-sized tech firm. When the company introduced a $5,000 referral incentive, they expected to tap into employees' networks and speed up hiring. Instead, they saw a surge in low-quality referrals, strained internal relationships, and a rise in ghosted candidates. Drawing on industry data and the company's own metrics, the hosts unpack why financial incentives can distort judgment, how the program affected hiring manager trust, and what the company did next—shifting to a values-based referral culture with non-monetary recognition. The episode offers practical takeaways for any organization considering or currently running a referral bonus, including how to design safeguards, set expectations, and measure quality over quantity. If you've ever wondered why your referral program isn't delivering the candidates you hoped for, this episode gives you the framework to fix it.
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