Given below are two statements:
Statement I: Employee referrals have become an established method to hire quality lateral talent.
Statement II: Under recommendations of employees, a type of preliminary screening takes place because the candidates know both the company and the present employees.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Statement I is correct but Statement II is incorrect.
Statement I: Employee referrals have become an established method to hire quality lateral talent. — Correct. Referrals are now a common, settled way to hire good people from other firms.
Statement II: Under recommendations of employees, a type of preliminary screening takes place because the candidates know both the company and the present employees. — Incorrect. The roles are reversed. It is the present employees who know both the company and the candidates. So they suggest only people who suit both, and this works like a first screening.
NCERT (2026-27 Edition): “(vii) Recommendations of Employees: Applicants introduced by present employees, or their friends and relatives may prove to be a good source of recruitment. Such applicants are likely to be good employees because their background is sufficiently known. A type of preliminary screening takes place because the present employees know both the company and the candidates and they would try to satisfy both.”
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