This study focuses on the hiring of nonfamily employees in family firms. Research to date has emphasized the challenges family firms confront in attracting and selecting quality nonfamily human capital. This literature has emphasized the limitations these firms face due to the information asymmetries common to the hiring process. However, this research has not considered the advantages available to family firms through their social network. Drawing on agency theory, I hypothesize that owner referral utilization mediates the relationship between family essence and firm performance because their use lessens the agency conflicts between owners and nonfamily members. Utilizing a sample of 194 family owners, my analysis shows that the utilization of owner referrals mediates the relationship between family essence and firm performance.