Introduction to Hiring: Why It Matters More Than You Think

Hiring is one of the most critical decisions a manager can make. The quality of your team directly influences the success of your strategies and, ultimately, your business outcomes. Yet, many leaders rush through the hiring process or treat it as a secondary task, leading to costly mistakes.

Effective hiring is not just an HR function—it’s a pivotal management responsibility. Managers must focus on selecting and supporting the right people to achieve great results. When the wrong hire is made, it leads to wasted time, disrupted teams, and expensive replacements.

Cost of Bad Hires

Hiring mistakes at the executive level can have significant financial and operational repercussions. Research by Heather Boushey and Sarah Jane Glynn, indicates that the cost of replacing a mis-hire at the C-suite level can be up to 213% of their annual salary.  This figure encompasses direct expenses such as recruitment, onboarding, and severance, as well as indirect costs like lost productivity, diminished team morale, and potential damage to the company's reputation.

For instance, if an executive earns $300,000 annually, the total cost of a bad hire could exceed $600,000… These substantial costs underscore the critical importance of a thorough and strategic hiring process for executive positions.

Common Pitfalls in Hiring Decisions

Hiring mistakes are surprisingly common, even among experienced leaders. Let’s explore some of the most frequent errors:

1. Relying on Gut Feelings: It’s tempting to trust your instincts, but research shows that gut-based hiring is wrong nearly 40% of the time. Strong candidates can only be identified through structured processes and measurable data.

2. Rushing to Fill Roles: The pressure to quickly fill a position often leads to skipping essential steps, like proper evaluations or reference checks. This short-sighted approach creates long-term problems.

3. Focusing on Credentials Over Potential: Overemphasising degrees, past job titles, or industry jargon can lead to overlooking candidates with real growth potential.

Learn by Observing: What Hiring Mistakes Did You Spot?

Watch the video below, where a hiring manager makes a mistake. Your task: identify the issue.  

Think critically about the manager's behaviour—then take the quiz to test your understanding.  

Self-check quiz

Did you notice what mistake the hiring manager made?

1. Making a quick decision based only on gut feeling (intuition).
2. Not using enough questions.
3. Using too many questions.
4. Asking irrelevant brainteasers.

Building Better Hiring Practices

Good hiring doesn’t just happen—it’s a result of a well-thought-out process. To reduce bias and improve outcomes, follow these four foundational steps:

1. Analyze: Start by understanding the role’s true needs. Avoid generic job descriptions and focus on specific skills and behaviours required for success.

2. Define: Create a profile of the ideal candidate. Think beyond experience and qualifications—what attitudes and capabilities align with your organisation?

3. Evaluate: Use structured interviews, case studies, or assessments to objectively compare candidates.

4. Compare: Avoid rushing to conclusions. Instead, compare candidates' skills, experience, and cultural fit to determine who best aligns with your goals.

Key Takeaway: Slow Down to Hire Right

The traditional method of “hiring on intuition” fails too often. Replacing guesswork with structured, data-driven decisions ensures you hire people who are not just good—but great for your team.  This article goes more in depth into how to use data in hiring decisions and why it's better to "Hire slow, not fast".

Coming Up Next

Next up, the best practice hiring process and how to apply it step-by-step. Let’s dive into the next section -> The Best Practice Hiring Process.