Yes, you need staff. But hiring isn't just about getting bums on seats, it's an investment in the future of your company. With so much focus on what a bad hire can bring, consider the hidden value of a good one. From transforming teams, to boosting morale, to driving innovation, the right hire can add so much value to a team, financially, culturally and strategically. Here's why a good hire matters so much more than you'd think.
The Staggering Cost of a Bad Hire
A bad hire can be a huge problem, not just financially. Gallup estimates that replacing an employee costs up to twice their annual salary. This is factoring in recruitment, training and lost productivity. When you consider that, it's money that could have fuelled innovation and growth, rather than damage control. Beyond the financial impact, there's a tangible culture one. 74% of employees say a toxic colleague hurts their team morale, according to SHRM's 2024 report, and this often leads to higher turnover. A bad hire is more than just a financial risk, it can unravel company culture and momentum.
The Positive Costs of a Better Culture
It's not all doom and gloom around here. A good hire flips everything a bad hire brings on its head, bringing energy, collaboration and fresh, interesting ideas. A 2024 Glassdoor study found that organisations with strong cultures see 4x higher revenue growth, thanks to their engaged, committed employees. It's not just about business output. Investing in the right person helps strengthen your company, with fewer conflicts, more trust and a workplace where employees enjoy being. Whilst you might think that the financial cost of finding the right person is a lot, in comparison to the disarray that a bad hire can bring, investing in your hiring process is the right thing to do.
The Power of Diverse Talent
A good hire doesn't always come from the same place. There's no one size fits all. McKinsey's 2023 Diversity Matters report shows that companies in the top quartile for ethnic diversity are 29% more likely to outperform financially. Diverse talent brings varied perspectives and experiences, which sparks innovation and problem solving. A 2024 LinkedIn survey adds that 78% of professionals prefer inclusive workplaces, showing diversity attracts talent. Sticking to the blueprint of what you think might be a good hire could be counterproductive. And hiring beyond the usual mould isn't just the right thing to do, it amplifies your social commitment and productivity simultaneously.
The Untapped Value of Early-Career Talent
Early career hires might seem risky or cost ineffective, but really, they're not. They bring adaptability, a hunger to learn and an understanding of how consumers might interact with your product. A 2024 Toggl report highlights that 62% of employers prioritise potential over experience, showing that early career talent can adapt to changing roles and business needs. Hiring early career talent is beneficial, both in helping young people start their careers, and in terms of cost for your business. Their salaries are lower, but their potential is immeasurable. Valuing early career talent helps build a pipeline of loyal, skilled workers.
Unlocking the Hidden Value
So how do you ensure a good hire? Here are some actionable tips below.
- Screen for Fit, Not Just Skills: Use behavioural interviews to assess cultural alignment alongside technical ability. If they'll fit in matters too.
- Invest in Onboarding: A 2023 BambooHR study found that structured onboarding boosts retention by 82%, setting good hires up to thrive.
- Prioritise Diversity: Actively source from underrepresented groups or use anonymisation tools to select talent based only on their potential.
- Bet on Potential: Seek early-career candidates with aptitude and grit, putting people at the forefront of your hiring process.
- Measure Impact: Track metrics like team productivity or engagement post-hire to quantify their ripple effect over time.
The Bottom Line
The cost of a bad hire can only be cancelled out by a good one. A good hire will save your business from financial, strategic and cultural disaster, adding value from day one. Gallup estimate that disengaged employees cost the global economy $8.8 trillion annually, so finding a good hire matters now more than ever. One good hire can change your business, so imagine what 100 of them could do. They're out there, just don't be afraid to change to find them.
