A bad hire costs up to 30% of annual salary. Nine practices reduce that risk: define the role clearly, invest in onboarding, assess domain knowledge, set performance expectations, handle legal paperwork like NDAs, decide on contract type and pay, evaluate the candidate's background and past clients, promote continuous learning, and align expectations with your systems.
A bad hire can cost you 30% of their annual compensation. So here are 9 best practices when hiring. Number 1, clearly define their role. And number 2, invest the time in onboarding them and get them up to speed on your services. Number 3, decide if you want to hire junior or experienced talent and adjust your expectations accordingly. Number 4, assess their domain knowledge. How much do they know about your services, about your niche, about your market? Number 5, determine the type of contract and compensation. Number 6, legal considerations, non-competes, non-disclosures, and other contracts. Number 7, set performance expectations. Number 8, highlight the importance of continuous learning. This way they stay vigilant and competitive. And number 9, background. Make sure you have a good understanding of the size of companies they worked at and the size of clients they worked with, and make sure their expectations of systems and processes and support align with what you have in your own setting.
