This blog article provides expert input on why it’s crucial to do the hard work upfront and get the “good hire” the first time, and what a “bad hire” can do to your company’s bottom line. Read on to learn the many ways the right person can help your company thrive and how a bad hire can set you back.
According to a study done by the National Business Research Institute, the financial loss of a bad hire over one year can range from $25K to $300K. The flip side is that an excellent hire can be extremely profitable. Here’s how hiring the right person can propel your company to success.
Hiring the Right Person Is Worth Investing In
You may be saying to yourself, “Hiring someone can be very costly, is it really worth it?” Bringing in a new recruit may affect your finances at first but hiring the right person will make your business thrive in the long run.
Costly at First, Lucrative in the Long Run
Alan Mullaly is a prime example of a newly hired CEO turning the company around. He was hired at Ford in 2006 and the company had just lost 12.7 billion dollars. Ford was predicted to file for bankruptcy before Mullaly arrived and helped the company prosper. The stock went from $1 per share to $17 per share when he left in 2014. His efforts saved Ford from completely going under.
Nick Balleta, CEO of TalkPoint says, “We look at hiring as an investment in our small business because that’s what it is.” Calculate the ROI on the employee. If you find the right person and are in need of good help, chances are the benefits of having this person’s help will outweigh the costs.
New Hires Bring New Ideas
When bringing on a new hire you create room for innovation. Listen to ideas the new employee has and make your meetings cooperative. There shouldn’t be one person making all the decisions for the company. More ideas make for better ideas.
Fresh eyes may help processes go more smoothly which will make you more money.
Hire like Steve Jobs who said, “It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do.”
Take A Load Off
If your employees are overworked and stressed, hiring the right person can help. Decreasing workload will lead to less stress and happier employees. Happiness drives success because happy workers care more and want the company to succeed.
Task Management Leads to Happy Workers
Happy employees care about the customers and work hard to make sure everything is operating at optimum levels. Happiness is contagious. The more you have in the workplace, the harder it will be for someone to stay grumpy. Hardworking, happy people can only lead to profits.
- In the case of Nick Leeson, an unhappy employee can cost your business millions. A movie called Rogue Trader tells Nick’s story and how he forced the Barings Bank, a company he worked for and despised, into bankruptcy. Don’t let your business be the next Barings Bank.
- One bad hire can create stress for other workers leading to unhappiness. In a study done by Eagle Hill Consultants, 68% of the professionals that participated reported low performers lowered overall workplace morale. Therefore, hiring the right person in the first place is so important.
- Hiring the right person with your vision in mind can help you manage tasks that would have taken you weeks otherwise to get to. Having trust and knowing that your employees will get things done will make your tasks more manageable.
How to Get the Most Out of Your New Hire
Is your company ready for a new hire? Before you figure out who you need to hire, you need to think about how that person will fit into the company dynamics. If processes and systems are already confusing for current employees, fix those first. This will save time for the new hire and your current employees who have to spend time helping. Think about the following questions to avoid wasting time.
- Are all of your processes and systems as efficient as possible?
- Are all of your current employees in the role best suited for them?
- Where will this new hire fit in?
- How will the workflow change once you hire someone?
- What will this new person do? Be very specific about job requirements and duties.
- Who will they turn to for training, advice, questions, or help in general?
- Does your onboarding process help you retain employees? Do you have proper training set in place? Build a sense of community for the new hire and check-in with them often.
If your workspace atmosphere has gone stale, consider hiring a new person to bring a fresh outlook and positive vibes. You can save time and help your business find the right person by hiring a recruiting agency. Alan Mullaly is proof that the right person can really make a difference.