Most companies know that their most important asset is their people, but many companies and organizations pay only “lip service” to proper selection, training, motivation, and management of their people. In this article we are going to focus on effective selection or hiring.
Today’s very tight labor market requires extreme care in making the right hire. The cost of a bad hire is significant. It not only includes the cost of poorly spent payroll dollars, but also opportunity cost, organization upheaval, customer alienation, and other effects of poor decision-making. Cost estimates associated with a bad hire can range from $10,000 to over $250,000. Any amount is too much.