Avoid Costly Hiring Mistakes

Probably the most important decision that you make as a hiring manager is hiring the right person for the right job. The consequences of your decision are immediate and huge. The right person makes money for your business and the wrong person always costs you, sometimes heavily.


Why do you hire an employee? To improve your company’s productivity and make it more profitable. Based on studies, apparently only 16 percent of employees actually make money for their hiring companies. Why is this? Because, apparently, the rest of the hires were wrong decisions.


It is so important to find at three or four final shortlists candidates for any job opening. Then narrow your choice down to two finalists and hire the one who best suits the job. If you don’t go through theis process diligently your odds increase that you will hire someone who is unreliable, unmotivated, and unproductive. You want to avoid what is commonly called a workplace survivor, someone that just gets by with minimum effort. Someone like that is not worth the money you put out and in time, might cost your company 2 to 3 times your investment, in terms of training, replacements and so on.

So how can hiring just one wrong person spell the disaster for your credibility?


  • The turnover costs to your company will be around $10K for an entry level position and up to $150K for a sales or management position, for each person that quits, or is terminated. You can avoid this payroll cost by hiring the right person the first time so that you don’t have to replace your employee.
  • Inept employees steal company resources such as time, resources, and more. This turns into a costly affair for the hiring company over a period of time.
  • Hiring the wrong person also gives rise to unnecessary lawsuits that the hiring company has to face. Your employee’s actions make you liable for a lawsuit, whether or not you had anything to do with it.

Not all wrong hiring decisions give rise to such drastic costs. Still, the effects of a wrong hire can linger for years and act as a slow poison that can suck out your business’s revenue.


Also, the more difficult, high-level, or important a particular role is, the more importance should be put on enlisting the services of a search firm. A reputable recruiting firm can help determine the strategy required to deliver on the results you are looking for.


by:  Anjela Mangrum, CPC


Anjela Mangrum is the founder of Mangrum Career Solutions Inc.  MCS partners with industrial and automation manufacturing businesses to source and secure transformational leaders for critical hiring needs in Operations and Supply Chain.  They work to empower individual job seekers by helping them gain a competitive edge in their job search. For hiring needs contact Anjela at 513.753.3813 x17.

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