Firm Need in Hiring Process

The video discusses hiring in firms, focusing on the need for employees and how it affects the hiring process. In large firms, a high formal need gives applicants more bargaining power, but this diminishes as more candidates apply. In small and mid-sized firms, hiring often occurs through referrals, with firms creating positions for valuable individuals. Applicants must demonstrate their value proposition to fit into these firms. Understanding the formal need level helps in planning and navigating the hiring process.

What role do referrals play in the hiring process of small and mid-sized firms?

How should an applicant demonstrate their value proposition when applying to a small or mid-sized firm?