Mentoion of the risks in predominantly using employee referrals when considering outside hires. As you state, there are risks when an organization relies heavily on employee referrals, as risks of nepotism and a far more narrow diversity pool of candidates is introduced to the hiring Managers. I also found a greater risk of employee conflict issues, as often the individuals recommended as job candidates were related to each other. This in turn creates issues when family relationships are fractured via divorce, and/or when sibling rivalry or other family-type issues arise.