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Large companies using employees to help fill vacant positions.

A survey of 40 employers found that many of them are asking their own workers to recommend candidates for vacant positions, and employee referrals now account for about one-third of outside hires, according to CareerXroads, a recruiting-strategy consulting firm.

In conducting its annual "Sources of Hire" survey, the firm focused on large businesses that hired 10 percent more employees in 2004 than 2003 and plan to hire at least 5 percent more in 2005. These companies are considered bellwethers for hiring practices--other employers will adopt their behaviors in the coming months and years.

The survey found the following:

* Nearly four in ten open positions are filled by internal transfers and promotions.

* Three in five external hires are attributable to just two channels, employee referrals and the Internet.

Employee referrals accounted for 32 percent of outside hires in 2004, up from 23 percent in 2001. CareerXroads attributes the rise partly to the Internet, which makes it easier for job seekers to send resumes to potential employers. With companies receiving many more resumes today than in the past, they increasingly are turning to their employees to recommend candidates for open positions.
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Publication:The Journal of Employee Assistance
Article Type:Brief Article
Geographic Code:1USA
Date:May 1, 2005
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