You start a new job at a retail brokerage firm after being invited by a friend to apply. The company is expanding rapidly and they offer $1,000 finder fees and $500 per year to current employees that bring in new employees as long as the new employees work at the company. The culture is very competitive with each group of employees supporting each other against other groups.

What are the potential agency costs in this arrangement? Is this finder fee and yearly fee conducive to long term employees? (approximately 150 words)