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Forbes
30-06-2025
- Business
- Forbes
The True Cost Of A Bad Hire—And How To Avoid Making One
By Krish Chopra Knowing the red flags to look for can help you avoid a costly hiring mistake. Your first hire can make or break your small business—it's a harsh reality that many small business owners learn the hard way. One bad hire can drain your cash flow, derail your company culture, and set you back months, or even years in growth. I know this because one particularly disastrous hiring decision cost my company exactly $47,000 in direct expenses, plus countless hours of lost productivity and shattered team morale. I've been in your shoes. As someone who's scaled a startup idea to over 60 employees, I've made my share of hiring mistakes and learned from each one. Building a platform that has served over 8,000 users taught me that successful recruiting for small businesses isn't about having Fortune 500 budgets or competing with tech giants on salary packages—it's about recognizing the warning signs before they become expensive disasters. The painful truth? I made that $47,000 mistake because I was desperate. We needed help immediately; our existing team members were overwhelmed, and I convinced myself that any qualified candidates would be better than staying understaffed. I rushed through the interview process, overlooked obvious red flags, and ignored my gut instincts—all because I was focused on filling the position rather than finding the right person. What I'm about to share are the real stories behind my biggest hiring disasters and the specific red flags I wish I'd recognized earlier during my recruitment process. These aren't textbook theories—they're hard-won lessons that can help you avoid the costly mistakes I made while building the team your small business deserves. The True Cost of Bad Hires and Why Getting It Right Matters When business owners think about recruiting for small businesses, they often focus on finding someone—anyone—to fill an urgent need. But here's the reality: a bad hire doesn't just cost you money; it can threaten your entire operation. Research shows that the average cost of a bad hire is $17,000, but it could range higher depending on the role and seniority level. For small businesses operating on tight cash flow, even the lower end of that spectrum can be devastating. Unlike large corporations that can absorb these losses, small business owners feel every dollar impact directly on their bottom line. My $47,000 Disaster Hire I learned this lesson during our rapid growth phase when we desperately needed a new experienced hire. We were overwhelmed, our team members were burning out, and I convinced myself that hiring quickly was better than staying understaffed. The candidate seemed perfect during our interview process: A few months later, I calculated the real cost of this hiring mistake: $47,000 in direct expenses alone. Here's how it broke down: The Hidden Costs of Hiring That Really Hurt The true costs of a bad hire extend far beyond direct financial impact: For small businesses, bad hires create a domino effect that large companies rarely face. When you only have five to 10 employees, one person who doesn't perform affects everyone. This experience taught me that developing a solid hiring process isn't a luxury for small businesses—it's a survival strategy. Every new employee you bring on board will significantly impact your trajectory, making it essential to get the recruitment process right from your very first hire. The lesson? Desperation leads to expensive mistakes. It's better to stay temporarily understaffed than to hire the wrong person and deal with the costly consequences. More from AllBusiness: 4 Bad Hire Red Flags I Wish I'd Recognized Earlier Looking back at my hiring disasters, I've identified four critical warning signs that could have saved me thousands of dollars and months of frustration. These red flags weren't obvious during interviews, but became clear once I learned what to look for. During the hiring process, ask specific questions about adaptability: Pay attention to communication patterns from day one. If someone's response time changes dramatically after being hired, investigate immediately. Set clear expectations about communication during the onboarding process and monitor them closely. During the hiring process, ask candidates about specific times they received constructive feedback and how they implemented changes. Look for evidence of a growth mindset and continuous improvement. In small businesses, every new hire must be able to learn and adapt quickly—there's no room for people who can't grow with feedback. Your existing team members are your best early warning system. They work with new hires daily and can spot problems before management sees them. Create formal check-ins with your team about new employees, and take lukewarm feedback seriously. In small businesses, every person needs to contribute positively to team dynamics—being "fine" isn't good enough when you only have a handful of employees working across operations, product development, preceptor sales, student sales, and HR functions. Trust Your Gut and Your Team After losing $47,000 and countless hours to my bad hiring decision, I've learned that successful recruiting for a small business isn't about filling a position quickly—it's about building a team that compounds your success over time. Here's the reality: good hires make everything easier. When you bring on the right person, they don't just complete their job description—they elevate your entire team, contribute ideas that improve your business needs, and help create a company culture that attracts more top talent. Bad hires do the opposite. It's better to stay temporarily understaffed than to hire the wrong person. I know the pressure to fill positions quickly when you're overwhelmed, but remember that one bad hire can cost you more than the temporary pain of working shorthanded. Your payroll system, employee benefits, and cash flow can recover from being cautious—they might not recover from a hiring disaster. The most important lesson that I learned? Your existing team members are your best hiring advisors. They understand your company culture, know what good performance looks like, and can spot problems before they become expensive mistakes.
Entrepreneur
09-06-2025
- Business
- Entrepreneur
The 3 Non-Negotiable Steps in Hiring Regardless of Your Industry
Hiring looks different at every company, but these three things are always non-negotiable. Opinions expressed by Entrepreneur contributors are their own. Different companies have different hiring practices. You can have multiple stages with different-level individuals, or just one comprehensive test and final interview — it just really depends on the organization, priorities, urgency and the kind of role. You might be able to streamline and customize things as much as you want, but after hiring hundreds of people, I've realized that there are three hiring non-negotiables regardless of your approach, industry and the position you're offering. 1. Hire problem solvers, not know-it-alls As much as it's ideal, you are not building a team of perfect employees. You are building a team that can work effectively and adapt when needed. No one can truly know everything — not even AI, at this point anyway. What you need then are people who have enough critical thinking to get the job done and navigate any problems along the way. It's important to have people who are willing to learn and decide for themselves. At the same time, have team members who acknowledge their limits and know when to ask for help. When someone doesn't have a big ego, they're more willing to try a different approach, even if it means getting out of their comfort zone. They're also more inclined to admit when they're wrong. One can have as much knowledge about the job, but problems are still bound to happen. You need employees who have the initiative to think about and find solutions on their own or with their team. Not those who claim to know everything. Related: There's a Growing Demand For This New Type of Professional — Here's Why Your Startup Needs Them, Too. 2. Hire team players who can also work on their own You're not just after people who can do their job right. You're getting people who can work well with the rest of your team. This means looking for people who can handle projects with both autonomy and a strong sense of collaboration. There will be times when they'll need to split their work together with their coworkers, so it's important that they know how to share that sense of responsibility. Hiring someone with this skill assures you that they know how and when to share the credit and give credit when it's due. When you have someone who cares about their own work and their team's work as a whole, without stepping on anyone's toes, the workflow stays steady and disruptions are minimized, whether the task calls for solo effort or group collaboration. They're also all willing to chip in, as well as brainstorm and combine ideas. 3. Hire people for their growth mindset, not their current skill set Hiring for potential doesn't mean you're merely hoping for the best. You need to hire for someone's ability and desire to grow, learn and improve because these are hard to teach. It's good to ask and see where your candidate wants to go in the future to have a good idea about their personal ambitions. This can be in regard to their career in the next five years, whether they see themselves in a leadership role or work-life balance priorities, among others. Always keep in mind that when hiring someone, it's unlikely that their ultimate goal is the job you're offering. When you have someone on your team with clear ambitions, they'll be more responsible, pay more attention to detail and care more about their own work ethic. Related: 3 Things I've Learned About Hiring and Firing After 35 Years in Business Close them with the right communication Knowing the right qualities to spot when hiring is just the first step. Knowing how to get them to say yes is just as important. In my company, OysterLink, for example, we make sure to discuss the following with every member we hire: 1. How this role will guide them along their own path Now that you have a clear idea of where they're going, it's now your job to show them how being in your company will bring them closer to their goals. Focus on how the job and the company will equip them with the right skills to thrive in the industry they would like to grow in. When they gain the right experience, they build a strong foundation — and that foundation not only benefits them but also strengthens your team. 2. How your company will support their growth Once you've shown how the role fits into their long-term goals, the next step is to make it clear that their growth matters to you, too. As a hiring manager, the way you communicate, provide feedback and structure the hiring process reflects your company's values — whether that's clarity, care or a commitment to development. Let candidates know that you're not just filling a position — you're invested in helping them succeed. When people feel genuinely supported, they're more motivated, engaged and very likely to grow with you. When you combine the right opportunity with the right message, you don't just attract great talent — you earn their commitment.
Forbes
28-05-2025
- Business
- Forbes
Stuck In Your Current Role? How To Grow Your Career Without A Promotion
Stuck In Your Current Role? How To Grow Your Career Without A Promotion How does a high performer continue to grow in their career when the company values them in the role they are currently in instead of training for a promotion? – Project Manager, Creative Agency Sometimes you can be too good to promote. You're too valuable in the role you do, and it's better for the company to keep you there. Or your manager doesn't want the hassle of having to replace you. Or your company is relatively flat, and there aren't bigger jobs to give you. Or maybe this project manager isn't as high performing as they think they are. Or their manager has been lobbying to promote them, but isn't influential enough to advance you. Or the company isn't doing well enough financially to afford your promotion. As you can see, there are multiple reasons why a promotion doesn't get through, so confirm why you are hearing No. Check out the company financials and recent promotion and hiring history to see if they're spending money on people, and if so, what roles. Have a candid conversation with your manager about your promotion worthiness specifically, not just how you're doing. Your performance reviews are about how you're doing in your current job, not necessarily your career potential. Take a long, hard look at the support you have from your manager, your skip-level manager (manager's manager) and other senior leaders – do you have the right people advocating for you. One popular reason for wanting a promotion is to grow your responsibilities and opportunities. However, you can DIY your own leadership development. Use previous performance reviews for ideas on what skills you need to learn, what qualities you need to develop and what experience you need. Check out your company's tuition reimbursement benefits and what classes you can take to fill gaps. Work with your manager on restructuring your role for stretch assignments. Look for opportunities to add emerging trends, such as AI, to your day-to-day. Another reason for wanting a promotion is the chance to manage people or budget. You can grow your career without being a manager. Manage a part of a project, if not the whole thing. Ask your manager if you can take something off their to do list – they'll be grateful, and you'll get exposure to part of their world. Volunteer for something that gives you hands-on management experience. For example, join a nonprofit board, lead a committee in your professional association or offer to organize an event or fundraiser in your community. Making more money is a top reason for wanting a promotion, but moving up isn't the only way to increase your income. Grow a side business – it will flex different skills than your day job and bring in extra money. Review your investments to see how you can improve returns on the money you save – e.g., consider rental real estate, look for higher yielding bank accounts. A small mindset shift from asking for a promotion to negotiating your promotion can remind you that this is a back-and-forth dialogue, not a one-time request. Prepare to negotiate by confirming what you want (e.g., title, raise, profit-sharing, which responsibilities, what resources), preemptively thinking about what your manager, their manager and other decision-makers might argue, and creatively thinking about a win-win for both sides. Schedule a separate meeting dedicated to your promotion discussion. Ask again, even if you initially hear No, and prepare to overcome objections.
Yahoo
21-05-2025
- Business
- Yahoo
Spotify executives banned a common phrase from their weekly 3-hour meeting
A key rule at Spotify's weekly executive meeting: Do not say "We'll take that offline." "You're not allowed to say the word 'offline' or 'later' — because that person is in the room," said the co-president. Executives aren't allowed to bring direct reports, either. Every Tuesday afternoon, Spotify's top brass — all of its vice presidents — pile into a room for a standing three-hour meeting with a key rule. "You're not allowed to say the word 'offline' or 'later' — because that person is in the room," said Gustav Söderström, Spotify's co-president, on an episode of the "Invest Like The Best" podcast published Tuesday. At other companies, when conversations get uncomfortable or someone hasn't delivered, people tend to punt the issue. But that's not Spotify's ethos, Söderström, who also leads tech and product, said. Instead of circling back, people are expected to hash things out. "It's real-time resolution — very simple in theory but incredibly powerful in practice. Most companies don't do it," he said. Another rule: No bringing direct reports. Everyone in the room is expected to know the discussion's details. "I'm trying to literally force the VPs to solve it themselves because I want them to be in the details. So, you're not allowed to bring anyone else in to explain your thing," Söderström said. "You have to be on top of it enough to explain it to yourself," he added. Without direct reports coming and going, the same group shows up each week. Over time, it becomes a tight-knit, high-trust team, Söderström said. Spotify and Söderström did not respond to a request for comment. The marathon Tuesday sessions are part of what Spotify calls its "bets" process — a structured way of deciding what the company builds next. Every six months, each VP pitches a bet. "It's very much like a startup process," Söderström said. "You don't get to use the fact that Gustav or Alex or Daniel may like you. This is like a VC meeting, you have to convince us." After the pitches, the leaders "stack rank" the 30 to 50 pitches. Teams then allocate resources based on that list and execute what makes the cut over the next six months. "It's a good mix of bottom-up innovation," Söderström said. Instead of relying on the company's top executives, Spotify brings in ideas from across its leadership and "all the layers below." "You're going to be much better at delivering something if you were the one who said, 'I can do this,' than if your boss said you can do this," Söderström said. The company's stock is up nearly 116% in the last year. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
08-05-2025
- Health
- Telegraph
‘We've got to nurture each other'
There is no silver bullet to ensure employee wellbeing – but a mix of dogged hard work, a company-wide commitment and some deft use of technology can certainly help. From colleague shout-outs through to menopause groups and wellbeing cafes, a raft of imaginative initiatives can help set the tone of company culture. So says Rachel Nicholls, CEO of Inspire Education Group (IEG), an organisation dedicated to providing further education. 'It's not as simple as waving a magic wand,' she adds. 'We try to employ a whole range of different strategies and mechanisms to support people with their wellbeing, their welfare and their mental health.' While every business today will declare staff are its greatest asset, IEG is walking the walk. And with good reason, since its 1,300-strong workforce is responsible for the education and wellbeing of some 11,000 diverse students across colleges in Lincolnshire, Peterborough and Cambridgeshire. So what are the secrets to championing wellbeing at work? People first 'As leaders, we really focus on how we create the right environment so people can thrive,' she says. 'Our people turn plans into reality and deliver for the communities we serve, and they need to feel valued, empowered and have the space to take risks.' Whatever it is IEG is doing, it's working. Staff across all levels were commended by Ofsted in March for their passionate commitment to the wellbeing of students, and in 2023 they were commended by the Association of Colleges (AOC Beacon Awards 2024/24) for their commitment to the wellbeing and mental health of staff and students. 'It's really important to look at what staff genuinely need and what will genuinely help,' says Sarah Young, IEG's vice principal, student and staff experience, who chairs the mental health and wellbeing group within the organisation. How do they do it? By prioritising the creation of a thriving workforce and spelling out their caring values. Individuals know they can ask for help when times are tough – personal upsets can spill over into professional lives, and simple acts of kindness among colleagues can be transformative. 'Since the pandemic there's been a blurring of lines between work and home,' says Nicholls, 'another reason why welfare is so important.' Nurturing employees and giving them space to voice worries is something that leading HR, payroll and finance provider MHR enables with dedicated technology – if staff don't thrive, a company will lose valuable talent. Its People First platform helps everybody, from employees to people managers and HR teams, find the best opportunities to suit individuals and offers well-designed feedback loops to connect employees, all of which helps support wellbeing. Embedding wellbeing Setting the tone from the top down is also critical, says Nicholls, and IEG has signed up to the AOC's mental health charter and reinforces these values through leadership training. 'It's really important that we talk about that from the word go,' she says, pointing to the fact that new managers are specifically trained in recognising the importance of mental health and wellbeing when they join the company. ''Let's look out for each other and be kind' is a really important part of our communication,' she adds. Mental health champions work across IEG's campuses. 'They are trained to listen and to help signpost staff to a range of support,' says Young. There are also pop-up cafes – with tea and cake – where staff can have open conversations. And each year, the company dedicates a day of its development week to wellbeing, featuring activities based on the NHS's Five Ways to Wellbeing guidelines for good mental health. Some initiatives at IEG have come from staff themselves – there's a cancer support group formed after employees affected by the disease welcomed a space where they could talk and support each other. Another group supports women with menopause and endometriosis. And IEG seeks to be a menopause-friendly employer. 'It's really important to look at what staff genuinely need and how we can support them,' says Nicholls. From big to small One of the most popular initiatives is a tech-enabled 'high five' on IEG's digital wellbeing platform, which allows staff to recognise and thank colleagues – which can include anything from helping with a troublesome task to receipt of good feedback from parents. 'It's just that act of kindness and its ripple effect that's so lovely,' says Young. 'It's essential for fostering a supportive community.' Colleague recognition matters in healthy organisations. Using MHR's People First platform, staff can recognise good work and share success stories with ease. As well as celebrating each other, managers can use the software to set individual goals and enable employees to see the impact of their work. IEG also offers free activities for staff – this term it's yoga and badminton – and round-the-clock advice and counselling. All students and staff across the colleges are invited to enjoy a free breakfast. 'We firmly believe that coming together with colleagues before the day starts has such benefits,' says Sarah Young. If this culture spreads beyond the confines of IEG's colleges, the entire sector will benefit, and there are a host of organisations doing some great things within further education, says Nicholls – and this offers hope for the future. 'Let's just do more of it, let's learn from each other. The humanity that we show as individuals in the organisation is so important…we have to nurture and value each other.'
