On the other hand, how many of us have interviewed people, checked their background and references, thought they were great, and ended up regretting hitting the person?
Sometimes, we call it the “old boy network”. Other times, it’s hitting someone you know is good because you have experience with them, and it’s an informed hire.
If you’re hiring your good buddy because you like them, it’s stupid and corrupt. I’d you’re hiring someone fantastic because you have insider information, it’s smart. Hopefully, it’s the latter (smart).