In general, all vacancies should be publicized and all employees be allowed to apply for any opening. Posting and circulating notices of vacancies maximizes employee awareness of job openings. The notice should include such items as title, department, job summary, qualifications, and salary and should be placed on bulletin boards, announced in meetings, and otherwise communicated to employees. Employee Referrals Current employees may also make referrals. This is a very effective job applicant source, especially if those making the referrals are good performers.
People usually make friends with people similar to themselves.
Applicants referred through this process will tend to have a more realistic picture of an organization. Moreover, qualified people may be reached at practically no cost. There are disadvantages, however. People might expect that all referred applicants should receive job offers, when hiring all referrals is likely to be impossible. Employee referral programs may be perceived as discriminatory in practice, therefore, caution should also be taken to ensure that a referral program does not result in discriminatory hiring practices.