Question

Imagine that you are helping Mary Oshannon read responses from THE candidates. What is a reason why a new candidate must submit references from existing clients?

a) To verify the candidate's education
b) To assess the candidate's technical skills
c) To evaluate the candidate's work experience
d) To understand the candidate's leadership style

Answer 1

Employers require references from new candidates to evaluate their work experience and key attributes such as work ethic, due to asymmetric information in the labor market.

Step-by-step explanation:

When it comes to hiring a new candidate, employers often require references from existing clients to evaluate the candidate's work experience and key attributes such as energy level and work ethic. This is due to the asymmetric information that exists in the labor market, where the employer cannot observe many key employee qualities until after they are hired. Comparatively, schools and universities might offer certain pre-screening based on a candidate's educational background like their degree and GPA, but getting first-hand references is vital for evaluating how candidates apply their skills and knowledge in practical work situations. Therefore, references from existing clients can tell much about the candidate's past performance and professional behavior, which academic accolades might not fully reveal.