The Hidden Soft Costs of a Hiring Mistake

Hiring the wrong person, or having the right person in the wrong seat, is costly to the company and all individuals involved. Jim Collins, in his bestseller Good-to-Great, had more to say about this subject than any other single factor.

Here are some of his points -

• Get the wrong people gone
• Hire the right people
• Determine the right seat for the right people
• First who, then what
• Make good decisions at all time concerning people
• Compensation is not about getting the right behaviors
• Compensation is about getting the right people
• The right people are your most important asset

Hiring the wrong person is costly in many ways and trying to keep the wrong person increases those costs. Here are some "soft" costs you might not easily track:

• Lost productivity - not only from the wrong person but also from those training and/or correcting the mistake. A wrong hire also causes a lack of productivity from others due to the associated problems involved
• Lost business opportunities - the wrong person causes problems that permeates up and around and can cause a lack of focus in developing new business
• Increased workload on others as adjustements are made for the wrong person and/or replacement
• Lower company morale - the wrong person can affect the moral of an entire staff. Gossip and insecurity among co-workers can develop, which is a major cause of job dissatisfaction
• Poor customer service
• Increase Emotional Stress for Managers

Very few managers, including HR types, are properly trained in hiring the right person for the right position. My personal experience is that few managers are not doing much more than filling seats, training the best they can, and terminating when they have to.

Did you catch and understand the "first who, then wha" from Mr. Collins? Hiring the right person, putting them in the right seat, and getting rid of the wrong people are vitally important to your business.....I don't care who you are!


To that end....

Danny Smith
In-the-Box Development