Implementation of the Employee Referral Method as a Recruitment Efficiency Strategy in the Human Capital Department of PT Mekar Armada Jaya

Abstract

This study aims to analyze the efficiency of the employee referral recruitment method at PT Mekar Armada Jaya, focusing on three dimensions, time efficiency, cost efficiency, and administrative workload while also evaluating implementation mechanisms and analyzing the dynamics and challenges involved. Employing a qualitative approach, data was collected through in-depth interviews with three informants from the Recruitment & Services Division who serve as recruitment executives at the company. Data triangulation utilizing interviews, observations, and supporting documents was used for validation. The results indicate that the employee referral method yields varying degrees of efficiency; the most significant contribution is in the time dimension, as it shortens initial selection stages, followed by reductions in administrative workload and cost savings regarding recruitment staff time. Despite these operational efficiencies, the method faces challenges that could hinder the recruitment process, such as the entry of candidates who do not meet company needs, internal conflicts (e.g., user-proposed candidates driven by organizational politics), and the moral burden placed on recruitment executives, which could compromise objective assessment. The study concludes that while the employee referral method delivers tangible efficiency gains, these vary in degree and are not absolute. Furthermore, specific challenges must be effectively managed to ensure the method operates optimally.