“Hiring The WRONG person Can Cost YOUR Business Over a Million Dollars?”
TRUE OR FALSE?
Here’s MY answer:
TRUE: Hiring the wrong person can not only cost you more money than you can imagine, it can also cost you AGGRAVATION and wasted time…
not to mention making good customers and other team members stop working with you. More on this in a minute.
HIRING THE WRONG PERSON…
…How Much It Costs And How To Avoid It…
-Most people that are hired are the WRONG person
-If you HIRE the wrong person, you’ll be afraid to fire them (and firing them will be a huge hassle, if you can even get up the nerve to do it)
-If you KEEP the wrong person, they will make your business and your life HELL
-In YOU find yourself in any of these situations, it is DEFINITELY going to cost you a lot of time and money
I often quote my friend Brad Smart, who wrote a fantastic book on hiring called “Topgrading”…
Brad did a study, and calculated that the AVERAGE cost of a “mis-hire” (meaning hiring the wrong
person) is…
…can you guess? I’m serious, take a guess…
…OVER TWO MILLION DOLLARS.
(Did I mention that you probably weren’t going to believe my huge numbers?)
By the way, I said AVERAGE. That’s right, it’s not the “high end” of how much it costs.
So how could this be? Seriously?
Consider the following:
1) The cost of finding the person in the first place, in terms of your personal time, the money you invested
2) The time it took you to interview the person, follow up with them, make them an offer, and actually do the hiring
3) The money it cost you to “set them up” in your business - including all the stuff you didn’t even realize you’d have to buy for them
4) The time it took you to train them and teach them how your business worked
5) The actual money you paid them, including the “extra” you paid for their social security tax, their worker’s comp, any other benefits… etc.
OK… that’s the obvious stuff. Got that all in your head?
Now how about…
6) The things you WEREN’T doing because you were spending time looking for, interviewing, hiring, training, and talking to this new person
7) The opportunities you missed because you were focused on getting your new team member “up to speed” in hopes that they’d save you time later
8) The “catch up” you had to play after they left and YOU were the one who had to wear two hats just to get back to “even” again
9) How far behind you are because now you have to start over looking again… considering the time and risk that the next person you find is very likely to wind up being the wrong person AGAIN
10) The secrets they learned and took - and maybe even the reality that they went into business as your competitor (don’t shake your head, this just happened to a friend of mine)
So what’s all that worth, in terms of cold, hard cash?
A few bucks, for sure. Let’s say it took you three months to find them in the first place, and then six months to get them trained to the point where they weren’t taking up more of your time than they were saving…
Can I get you to agree that this might COST you a lot more than you originally thought it would?
AND THAT’S THE BEST CASE SCENARIO… by the way.
In a more typical scenario, you’ll run into things like these:
1) It takes longer than 3 months to find someone you want to hire
2) You don’t realize you’ve hired the wrong person for more than 6-12 months
3) The person you hire does things to make it so that you CAN’T fire them (or so it’s very hard and
painful)
4) The person you hire makes friends with others on your team, your good customers, or your vendors or partners, so you’re afraid to fire them because you don’t want your GOOD people to leave out of fear or resentment (or your customers and partners to stop working with you)
5) You come to rely on your bad hire, to the point where you “get comfortable” and wind up TRAPPED with them in the long-run
THOSE ARE MORE LIKELY…
And I haven’t even started talking about the BAD situations that are far more common than you might imagine.
Am I exaggerating here? Not even a little. And you know it.
THE WRONG PEOPLE TO HIRE
Before we move on, let me give you a few clues to help you avoid hiring the wrong person.
Here are some “danger zone” hires…
-Someone who is “just like you”
This one is dangerous, because we tend to feel very attracted to people that remind us of ourselves.
But hiring someone like you, who thinks like you, who wants to START A BUSINESS like you did, is only working with you to learn the ropes, so they can eventually start their OWN business. You’ve been warned.
-Someone who “needs a job”
If you want to MAKE SURE you have problems in the future, hire people who can’t find work.
This is a great way to put a “glass ceiling” on you and your business that is UNBREAKABLE.
I am in no way recommending that you behave like a heartless person in business. No way. But when you are trying to GROW your company, you can’t afford to have ANYONE working around you that isn’t HIGHLY motivated.
Trust me. I’ve screwed this one up MANY times, in many ways, and it’s never worked out well.
-Someone who’s related to you.
If you and your relative each have 10 years of solid business experience combined with emotional maturity and healthy personal boundaries, then forget what I just said, and work together.
If not, then plan for something bad to happen down the road.
It doesn’t ALWAYS go bad, but my experience is that it will strain your family relationship in about 95% of cases.
I’ve been there. It’s painful. In my own personal situation and experience hiring a relative, the conflict happened almost 10 years ago, and it STILL causes my family stress.
-Someone you want to help.
If you want to contribute to the world, my advice is to hire STARS to work with you in your business, earn a lot of money, and THEN give back.
Don’t try to mix business and philanthropy when it comes to hiring people… unless you have a lot of extra money, and you don’t care whether or not you get any kind of return on your investment.
If you want to help people, become successful, strong, and financially independent - then give.
MY POINT:
When I look around at the businesses that are started, owned, and run by people I know, I see the above mistakes in almost EVERY SINGLE ONE of them.
And these mistakes are causing more friction, hassle, loss, and conflict inside of their businesses… than possibly any other factor.
THE RIGHT PEOPLE TO HIRE
In our business, we have a term that we use for the “right” people to hire:
STARS.
We call them Stars because we want to be VERY clear that we’re looking for people who have natural talent combined with high aspirations, a sense of pride in developing themselves to their highest potential, and the persistence and determination that it takes to achieve massive success over the long- term.
And that should be who YOU are looking for as well.
Don’t hire your friends, family, and the people around you who can’t find other work. Don’t hire to “help” people. Don’t hire because you LIKE someone.
Promise yourself (and me) right now that you’re going to take a little extra time to FIND the right people in the future.
Promise yourself (and me) right now that you’re only going to hire STARS in the future.
And promise yourself (and me) right now that you’re going to LEARN how to interview people correctly…
that you’re going to LEARN how to ask questions that get you HONEST and VALUABLE information… that you’re going to LEARN how to make double-sure that you’re hiring people that aren’t going to waste your time and make your life HELL.
So, is it true or false that hiring the wrong person can cost you over a million dollars?
I don’t know. But I DO know that it will cost you so much in time, energy, hassle, and lost opportunity that you’ll wish it never happened.
I recommend that you invest a little time to learn how to hire people the right way.
You can do it on your own, you can hire someone to teach you, or you can come to our training program.
Whatever path you choose, just do it.
Of course, I want you to come learn it from me and my team of experts. We’ll teach you the shortcuts for finding, interviewing, and hiring Stars…
including the exact system we’ve developed and refined over YEARS… that has resulted in us recruiting DOZENS of the most amazing team members I’ve seen in any business.
Oh, and you’ll ALSO be trained by the guy I mentioned earlier - who literally wrote the BOOK on interviewing and hiring “A Players” for your team.
It’s all happening here, so apply for the program while there’s still space:
http://www.myprofile.ph
Axel “The Wizard Of Wealth”
P.S. I want to hear your success stories - and I want to hear your questions. If you’ve used any of our techniques to improve your marketing, hire a great person, install systems in your business, or partner with a big company… then drop me a line.
I want to know what’s on your mind. Email me at:
SuccessStories@myprofile.ph