Unfortunately this isn't a happy ending to the story. HR threw a hissy fit that they were being sidestepped (because they were completely incompetent ninnies.) And management had to come down on the manager who was doing it and tell him to follow the process.
My poster child is a company of about 30 that had a "VP of HR". I can't count how many candidates took another offer while she sat on her ass "checking references".
So long as you don't discriminate against a protected class, you're usually good to go. Nepotism is bad business, but it isn't illegal.
Investors do care about bad business decisions, so it makes sense for them to require good hiring practice. However, if a sole proprietor -- or a business with all its shareholders -- decides to hire inept cousin Vinny to keep him from idling about the house, that's usually legal. In a family-run business (where there is a paper-thin wall between business and personal finances), it may even make financial sense.
This differs from almost any other jurisdiction in the world.
I've never worked for a tech company. But I have worked for two bulge-bracket investment banks.
In the first case I'm pretty sure the person looking to fill the role personally contacted my college's recruiting service (because she had received her MBA from there). In the second case I saw a Craigslist listing either by the person himself or his assistant, talked to someone I knew at the firm who worked near him, then reached out to the person directly. In both cases the person hiring did my first (and, in the second case, the only) interview, and I never talked to a true HR person, let alone recruiter, before receiving the offer. Does this sort of hiring never happen in tech?
I agree with everything you wrote, but if your company is big enough to have in house recruiters they probably don't want you doing it!
Not because they don't want to be able to hire great candidates efficiently. But because you presumably don't maintain the statistics they need to keep. For example, say (I don't know you and am just making this example up), you might without realizing it only be contacting candidates who have names that you recognize as male, while they want to make sure they are pulling from a wider pool to improve their chances of getting the best candidate They may have other reasons for collecting such statistics (SEC filings? Who knows?).
I only do the sourcing, and the HR side I leave to recruiting. The bottleneck in the process is the sourcing, and I have no desire to do HRs job.
On statistics, they only care about the statistics for their own sourcers and processes. There is no regulatory reason for collecting such stats.
Another thing to remember is HR is the weakest organization in any company, and recruiting the weakest in HR. Any manager worth their salt pushes recruiting around, not the other way around.
With reference bonuses, I think most companies do appreciate having their employees do sourcing, which makes your observation that you can't get others to do it all the stranger.
Especially when the communication required to delegate it well is more work than just doing it.