I agree. So should that person get a "skip the vetting process" pass?
At my current org, they don't. They go through the hiring process like everyone else, and the person that recommended them is not involved until they are hired or not.
They will very likely be hired because they are good, but the process makes sure of it.
A middle ground that I follow is to go back to the person referring and ask are we stupid for not hiring this person? Then we try and reconcile the interview performance with the recommendations.
Another thing that I generally do is never recommend to anyone great that I know to come work where I work. Nothing good comes out of that. They already have good jobs. There is some probability they won't be as successful in the new place. I would deviate from that under certain scenarios but as a rule I would not initiate that sort of change. If they come to me I'd happily recommend them (rarely happens, as I was saying, they have good jobs).
Referrals are tricky especially when there's incentives like referral bonuses and everyone starts referring their cousin's friend's uncle's neighbor (some other problems in that sort of culture but we digress).
At my current org, they don't. They go through the hiring process like everyone else, and the person that recommended them is not involved until they are hired or not.
They will very likely be hired because they are good, but the process makes sure of it.