Referring a Friend for a Job Seems Helpful—New Research Shows It Can Backfire

New research shows referrals can quietly undermine credibility and support at work.

BY KIT EATON @KITEATON

When you’re friends with someone who you think is amazing, capable and a potentially great fit for a job going at the place where you work, it can feel like a natural step to help out by referring them to the HR team. From a personal point of view, there’s seemingly no downside: you help your employer land someone you know would be a great worker, and the person in question feels supported. But fresh research suggests that next time it may be best to think twice about referring an acquaintance for a job or maybe even a promotion inside a company: as it can actually harm their work, long-term.

The psychologists who wrote this study framed the whole issue as the “referral penalty.” It works like this: imagine there are three or four new hires all arriving at a company at........

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