Why do most companies hire mostly through references from the employees currently who are employed with them without conducting a proper interview. Is that healthy for an organizations growth?

Hi Bandaru, interesting question. I think recruiting through reference is good for companies because selecting candidates by conducting interviews is a very expensive and time consuming process. So to avoid this most of the companies prefer this method. And the main reason is the employee working there knows what the company expects in a candidate and if they know any of them who possess those qualities they refer them. So this is really a healthy process.

Thanks......