Avoiding A Bad Hire
Bernadette Hill
January 8, 2025
It’s happened to every company at some point: You hire a person you think is going to be a rock star and help drive your business forward, but what you get instead is a poison pill who is threatening to self-destruct and wipe out your forward progress.
Now, depending on when you realized that this was an experiment in futility, this can be a huge financial blunder. How much? Well, CareerBuilder says that two-thirds of companies have hired the wrong person and 41% of those companies claim that it ended up costing them more than $25,000. Worse yet, one in four of those said it cost more than $50,000. These are make or break numbers, folks.
The kicker? It almost always could have been avoided. Sure, it’ll take a little more effort up front, but who doesn’t want to do that as opposed to losing $50k on a bad bet? With a little bit of planning you can make sure that you avoid a cultural and financial disaster.
Here’s how:
- Profile your most successful employees. Find out what makes them tick. Then, after you’ve collected that info, ask them for input. These are the people that will be working with new hires daily; you’ll be amazed at what they offer.
- Write a job description. This is not optional. If you’re just going to “wing it” then how in the world would an employee even know what to do? If you can’t write one yourself, hire someone to do it.
- Interview, and do it right. Be prepared, have questions prepped based on their resume and cover letter. Take notes based on what your employees told you. Oh, and be ready to spend 75% of the time listening, not talking. It’s all about listening.
- Don’t fall in love. I don’t care if this is “the one”, you’ve got to meet several candidates for the gig. This is a weird form of corporate speed dating and it’s tough to master, but if you settle for the first resume across your desk, well, just remember what a $50k mistake feels like.
- References are your friend. If the candidate isn’t willing to cough them up, be wary. These are the people you need to talk to in order to see how your potential employee handles pressure, workload and other people.
- Bring in your current rock stars. Encourage key team members to participate andif they need to be trained on fundamental interview best practices, then offer it. Think of it as an investment.
- The first place to look for new employees is from candidate referrals from your existing staff and established advisors and peers. It helps take the guesswork out of the process.
Now, without using names, I’d like to hear about some of your bad hire experiences and how you handled it. And, if you’re wondering, “Dealing with a Bad Hire” will be featured soon!
Share This Post!
Talent Tap Trends & Insights | Lancaster, PA
Hugging It Out: The Workplace Version: Version: A growing number of employees are “job hugging”— holding tightly to their current roles, not out of engagement or ambition, but out of caution. With lingering concerns about layoffs, inflation, and a competitive hiring market, many professionals are opting for stability over risk . While retention may seem like a positive on the surface, job hugging can quietly impact productivity, innovation, and team morale . Employees who feel stuck or disengaged may do just enough to meet expectations, avoiding initiative or growth opportunities. Over time, this can create cultural stagnation and missed business potential. Employers should be mindful of subtle warning signs: decreased participation, resistance to change, or a lack of long-term goal setting. Addressing this starts with open communication—understanding employee concerns and creating an environment where growth feels safe, not risky. Consider: · Investing in internal career pathing and skill development whenever possible. Create low-friction ways for employees to explore new roles, projects, or teams within the organization. · Using performance-based bonuses to reward meaningful contribution. Bonuses can re-energize employees who’ve slipped into “just enough” mode—but they need to go beyond basic output. · Tying recognition to initiative—not just output . Many job huggers meet expectations but avoid stretching. Shift recognition and rewards toward behaviors like problem-solving, cross-functional collaboration, and idea generation . When employees see that effort, curiosity, and calculated risk-taking are valued (and safe), they’re more likely to re-engage rather than retreat into minimal performance. In a time when many are playing it safe, forward-thinking companies have an opportunity to reignite motivation—and turn retention into true engagement.
The Future of Work is Owned – Literally. The way people think about work is changing fast. Today’s workforce—especially Gen Z—want more than a paycheck. They’re looking for purpose, stability, and a real stake in what they help build. That shift is pushing more small and midsize businesses (SMBs) to rethink how ownership works. Employee ownership is emerging as a practical way to improve retention, engagement, and long-term performance—without adding unnecessary complexity. Tim Garbinsky , Communications Director at the National Center for Employee Ownership, has seen how powerful this can be. When employees understand how their work directly impacts the value of the business, ownership stops being a “culture initiative” and becomes part of everyday decision-making. So, what does employee ownership look like for SMBs? Employee Stock Ownership Plans (ESOPs) offer tax advantages and are often used by owners planning an eventual exit. Employee Ownership Trusts (EOTs) provide long-term stability with simpler administration. Direct employee ownership is flexible, cost-effective, and easier to roll out than many owners expect. Worker cooperatives emphasize shared ownership and democratic governance. Profit-sharing and equity compensation align incentives without shifting control. Tandem Business Center for Shared Success helps companies explore direct ownership models. According to Executive Director Drew Mousetis , about 40% of the businesses Tandem initially meet with, ultimately move forward—often starting with gradual employee education around stock ownership, financials, and valuation. Employee ownership tends to work best for businesses that are thinking about succession, want to compete for talent without raising payroll, and care deeply about culture and continuity. As Garbinsky notes, employees value transparency and stability far more than many leaders realize—especially during uncertain times. The takeaway: Employee ownership is not just a perk. It’s a strategic way to strengthen your business, reward your people, and plan for the future.