1.

In addition to high turnover and acquiring people who are not the best fit for the job, what
other disadvantages are associated with limiting recruitment to "word-of-mouth' only?

Disadvantages of “word- of- mouth” recruitment are as follows:

i. It leads to corporate “inbreeding” as employee tends to refer someone who has similar
backgrounds. Inbreeding creates workforce that are relatively the same. Thus, it leads to lack of
creativity and workforce diversity in an organization.
ii. Also, and employee who rely on employee referrals tend to discriminate against other potential
applicants as they also like to hire people who are same as themselves and do not take rational
decision while selecting the employee. This can lead to organization being charged complaint
for discrimination and biasness in selection process.
iii. Recruiting candidates through word of mouth who are highly unskilled and underqualified can
turned out to be time consuming and expensive process for the organization.
iv. Also, it leads to nepotism and favouritism in the organization which can adversely affects its
reputation.