Hiring decisions are one of the most important decisions made by managers: Most of the businesses depends on effective hiring as today’s businesses are more about human assets than that of physical or financial. Buildings, equipment, technologies can be purchased but human talent and know-how are gained through effective hiring and retention processes that are driven by managers.
Decisions of wrong people in the wrong positions will obstruct the company and its units to put a good performance and could be very expensive to fix. The cost of wrongly hired person including the person’s compensation and cost of maintenance -the hiring cost and the turnover cost- increases due to the mistakes, failures and missed opportunities by the wrong person in a management position. Finally, it reaches to an amount that is twenty-four times the employee compensation.
The damage is even bigger when the wrongly hired person is a manager: C-level managers typically hire C-level people, set lower standards than the potential of the company; whereas great managers hire great people, set the bar higher and contribute greatly to the company’s well-being.