Hiring from the network sounds like a fast way to get qualified employees, but it backfired when we ended up with groups of employees who were too tight (some even shared apartments)

The work place was transformed into a reality show where you had groups of people trying to maneuver "up" in the system, by convincing the management that their way was better. No matter the discussion, they would back each other and support their own guys. As a group they would always win a discussion.

The company stagnated, but they were able to get new jobs and left before the long term impact was (finally) realized by the management