Final answer:
The statement in the question is true; rapid and accurate evaluation of employees' performance enables firms to take calculated risks by hiring potentially high-value but uncertain candidates, similar to strategies used by investors with startups.
Step-by-step explanation:
Fast and accurate assessment of an employee's true performance allows a firm to make better-informed decisions regarding hiring candidates with potential but uncertain outcomes. Just like screening mechanisms are used to mitigate the risks associated with imperfect information in labor markets, the ability for quick identification of employee performance serves as an internal screening tool that can justify the risk of hiring an unproven or 'risky' candidate. Employers utilize educational qualifications, work history, awards, and referrals to screen for hard-to-observe attributes like motivation and work ethic.
Risky candidates may possess high potential or unique skills that, if assessed correctly and swiftly, can bring significant value to the firm. This is analogous to angel investors or venture capitalists who take calculated risks by investing in startup firms based on personal knowledge of the managers and their business plans. The firm's approach enables it to capitalize on high-potential employees before competitors do.