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What is the advantage of hiring a staff based on referral?

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For some businesses, they don't conduct open recruitment process to get staff for their organization. They instead depend on getting referrals from people they trust on staff to employ.

Do you think having someone directly refer a staff for employment has advantages to the business organization? What are the advantages?
 
In cases like this the work is easier as whoever referred them knows exactly what you are looking for and probably referred someone who fits this category.
 
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