Personnel policy; referral recruitment

Importance of personnel policy

A personnel policy is a broad guideline that governs decisions about recruitment, pay, promotion, discipline and other staff matters. Importance:

1. Ensures consistency and fairness, so everyone is treated alike.
2. Guides managers in quick, uniform decisions.
3. Helps achieve organizational goals by aligning staff actions.
4. Builds good employee relations and trust.
5. Provides legal compliance with the Labour Act, 2074 and Civil Service Act (for government).
6. Reduces conflict and grievances.
7. Attracts and retains competent staff.
8. Gives a basis for control and appraisal.

Referral recruitment: pros and cons

Referral recruitment means hiring people recommended by present employees or known contacts.

Pros

1. Low cost and faster than advertising.
2. Referred candidates are usually more reliable, since the referrer vouches for them.
3. Better fit with company culture; faster adjustment.
4. Access to passive candidates with scarce skills (useful for IT firms in Nepal).
5. Higher retention; employees stay longer with friends.
6. Motivates staff who receive referral bonuses.

Cons

1. Nepotism and favouritism; the "afno manche" culture may reduce merit.
2. Lack of diversity and talent from outside the circle.
3. Possible group formation and conflicts.
4. Poor performance of a referred person may embarrass the referrer; also difficulty disciplining relatives.
5. Legal and fairness issues in public jobs.

In a competitive world, referral should be used along with open advertising and structured tests so that merit stays the base.