How to Hire Good Employees

Hiring the wrong person for a position can be costly to your business. A bad hire can drain energy, time and can cost a business in a number of ways. Brian Tracy, motivational speaker and self-development author once stated: “As a business owner or manager, you know that hiring the wrong person is the most costly mistake you can make.”

Here are some ways a bad hire can impact your business. We will also take a look at six tips on how to hire good employees.


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how to hire good employees
Impact of a Bad Hire

Financial Cost
A report from the Recruitment and Employment Confederation (REC) reveals that 33% believe that a hiring mistake costs their business nothing when in reality, there are various expenses attached to a bad hire. Not only do you have to pay a salary to someone who may not be performing to your expectations, but you also have to take into account the cost of training, staff time spent on recruitment processes, lost of production and the cost of hiring and developing new employees.

Decreased Productivity
If your new hire isn’t pulling their weight, the rest of your team could be the ones who have to pay for it with extra effort. This negative impact on productivity could see your other staff working harder to meet goals, leading to burnout and loss of productivity. Bad hires can even drive your best team members away, often right into the hands of the competition, taking the skills, knowledge, and expertise that you have helped develop. Understanding how to hire good employees is important.

Team Morale
The National Business Research Institute report that 37% of companies who reported ‘bad hires’ claimed it negatively affected employee morale. That statistic makes sense. If a new employee isn’t pulling their weight, other teammates often have to pick up the slack. This could lead to resentment of your team’s new colleague, and the team that hired them. After all happy employees happy customers is a real thing.

Company Reputation
One of the things customers are most likely to remember is the direct interaction they’ve had with your company. Bad hires, especially those who are client-facing, can damage relationships if customers are not treated well. Relationships are not easy to rebuild once trust has been broken. This can result in bad online reviews and even more need for an online review management platform. Online Reviews matter.

hiring good employees
Six tips ensuring how to hire good employees

An impressive list of qualifications and extensive work experience is certainly an asset but should not be the only factors to consider when hiring a new employee. Here are six tips to consider when hiring good employees.

Determine the strengths needed for the position.
All jobs pose some level of challenge and require certain qualities from an employee in order to be effective. For example, if you are looking to hire an IT technician, you should also look for candidates who, in addition to their qualifications, have the necessary mental and psychological strength to cope with pressure, tight deadlines, and complex client demands. If you are looking to hire someone to do a job which is repetitive in its nature, you will need to determine whether the candidate will need to be able to stay motivated, even if they are required to perform the same actions over and over again.

Look for a career-oriented person
If this is a long term hire, you want an employee who is going to be loyal to the company, and who will view your job as an opportunity to advance their career. You want an asset to the company at the same time. If you have a candidate who worked for several companies without a decent tenure or resigned for without a valid reason, will they do the same working for you? An employee with a checkered background can be more likely to leave after you have invested time and resource in training.

Practical experience is an asset
A candidate with practice experience will be able to integrate more quickly and become familiar with the role. You will save time and money when it comes to training. Of course, every new employee needs to go through an adjustment period, but you want to keep that period as short as possible.

Implement testing in the recruitment process
Implementing various testing practices during the recruitment process will give you a better picture of a candidate’s learning ability and analytical skills. This gives you better insight into how resourceful they are when presented with a new challenge.

Social skills
Your candidate’s social skills need to be developed enough, so they don’t disrupt the positive atmosphere of your team. Look for a candidate that will fit in, and adapt to your company culture. Then if possible, find out how they got along with their former colleagues and bosses when you conduct reference checks. Use the old “If I were to call your old boss or a co-worker, what would they tell me when I asked them about how you fit on their team?” This can get really fun, AND revealing reactions from candidates.

Social media checks
While it pays to get to know your potential employee as a person, asking personal questions is not the best solution as it could make them uncomfortable. Social media is a great tool you can use to learn more about a candidate.

Final Thoughts: A bad hire who interacts with your customers can do significant damage to your company business reputation and provide poor service. Unsatisfied customers are more likely to share their negative experiences. Popular review sites like Yelp and Facebook, are only a click away. The impact can be quite damaging. Having an online review management platform is essential to get ahead of negative reviews, and provide you the ability to head off damage before its posted publicly. Learn more about 5starRocket’s online review platform.