Financial Implications of the Hiring Process - by Ravi Patel


Hiring the right people is an art, but if not done right it can have significant financial consequences.


Entrepreneurs are sometimes concerned about the costs of a good hiring process - such as recruiting fees, ads, background investigation, reference checks, multiple interviews involving a number of people. While these costs do add up, the financial implications of a poor hiring process are even greater.


Hiring the wrong person not only results in re-incurring some of the search expenses, but it also adds more significant costs such as lost opportunity costs, disruptions and stress in the organization, lost time, wasted training, delay in accomplishing objectives and so on.


Entrepreneurs should beef up the hiring process by investing in upfront procedures and tools to avoid significant future costs of failure.



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