Refer a friend

You go first.

This was your manager's intent, conscious or subconscious, she wants people like the ones she has. Getting people who have been prescreened by existing employees is not inherently wrong, but as you point out, it perpetuates a system of people on the inside and people on the outside and likely excludes good candidates who are unaware of the position. The time to bring this up was when the manager proposed the strategy. It might be worth a conversation now, but I doubt it will do anything other than the maybe make something different next time. Is there an HR department where you work? They might be able to offer advice.

There is quite a bit of research on employee referrals. They are great for a business. Hiring through employee referrals significantly improves the chance that employees will be productive and turnover will be low.

Sure, there is a cost... employee referrals decrease diversity.

If the choice is between diversity or a productive, engaged team....what should manager choose?

There is a lot into play here - is this a hard to fill job? Do you have a lot of turnover? How much skill and how specific a skill do you need? How important is it to fill these positions quickly? How much training is required once hired?

Yes having diversity is important, but did your manager have issues previously going the other route? Perhaps reaching out via refer a friend is easier and maybe she has had more luck this way with keeping employees?

It really is hard to judge on whether this is the best tactic or if she is just taking an easy way out.

If you are close to your manager, I'd just tell her straight out - I am concerned that we lack diversity - is there a different way we can recruit to get a more diverse staff? Also are you of this same age/college? If not, then you should have reached out to a friend even so - do you know anyone that you could have referred that has a different background to help diversify your team?

Let us know what your Business Ethics instructor recommends.

You can't go wrong with a good song and dance routine, I'd go with something from the Sound of Music.

I was thinking "Consider Yourself"

Rick Mayall does a really peculiar version of that on Filthy Rich and Catflap, based on the notion that all pickpockets sing that song while picking pockets.

You mean they don't? Helps explain why I was a singularly terrible pick pocket. Any idea what they do sing?

Asking for a friend.

Something from Fiddler on the Roof.

Oi vey.