You and I love employee referrals.  We wish we could get more of them.  But, for the rare company that can generate 25% or more of it's annual hire goal from this source, employee referrals can actually weaken the company DNA.

Here's why.  High volume employee referrals mean:

1.  Your company is whiter (or whatever color is your majority.  Full disclosure - I'm white.  I'm Irish.  That means I'm really white.  Don't hate.)

2.  Your company has a declining average IQ.  People don't refer people smarter than they are - that's a threat.

3.  You company is more Blue as a result (or Red).  We don't refer people who think different than we do for the most part.

4.  Your company can hold the alumni meeting onsite without anyone getting in their car.  We love to refer people who went to college where we did.  Roll Tide/War Eagle.

5.  Your company is getting less attractive with each new hire class (which wouldn't be a bad thing if the candidates didn't know someone in the company)

Referrals are great.  Too much of a good thing ends up being a negative.  Cap off referrals at 10-15% of hires.  The change you get as a result will do you good.