The Influence of Employee Referrals on P-O Fit

Abstract

Kristof noted that employees recruited through special programs have a higher P-O fit than those recruited through general approaches. However, the study of Saks and Ashforth found that employees recruited by informal methods have a poorer person-organization fit (P-O fit). The essence of special and informal recruitment methods should be similar, but the employee referrals (ER) program is an informal recruitment method frequently adopted by businesses. What, then, is the P-O fit of employees that are recruited through ER? This study discovered that the work-related information provided at the time of making the referral easily causes a substantial perceptual gap in employees, leading to a poor P-O fit. As those that make referrals are not professional recruiters, they may not provide the essential information relevant to the firm's recruitment. Consequently, the job applicant would likely form a mistaken perception and join the firm under erroneous expectation, resulting in poor P-O fit after entering the company.