Importance of Hiring the Right Staff: Cut Costs, Drive Growth

Jun 24, 2022

Working alone might seem attractive when you’re first getting started. All the decisions and credit belong to you alone. But at some point, either due to growth or a desire to work more strategically, you’ll likely need to hire staff. 

As a business owner, you want to hire the right candidate. But finding them can be difficult. Hiring a warm body who can do the job or the first candidate who applies might be tempting. 

It’s especially easy with your first few hires to neglect the importance of hiring the right staff and the exponential effect they can have on your productivity and success. You might be tempted to hire one of the first candidates who apply for the job, but this can be a mistake.

Hiring the right person for the job is essential in any business. Great candidates can pay for themselves many times, helping your business achieve its goals by improving team dynamics, increasing productivity, and reducing costs.

Why Is It Important to Hire the Right Staff?

Employees can either be a limiting factor or a growth factor. Unqualified and unengaged employees might make it harder for you to succeed, while excellent employees will become your most valuable assets. 

Hiring the right staff creates a win-win-win situation for all parties: 

  • Great talent will get the job done efficiently while bringing in their own creative ideas, leaving you mental space to work on your business. 
  • The employee will also be able to grow and learn with your company while making money. 
  • Perhaps most importantly, your customers will be happier because they will receive competent service from an engaged employee.

The importance of hiring the right employee is evident when they enjoy dealing with people and love their jobs. Imagine the effect of staff members happily greeting customers when they arrive, eagerly answering questions, and helping them find what they’re looking for. Those customers will want to return! 

Your staff’s responsibilities go beyond interacting with customers. Your employees must also care for equipment, tools, and inventory. Hiring right can help ensure your assets are in good hands.

5 Reasons to Focus on Hiring

Vendor management issues can be a significant concern for companies today. For your business to succeed, your vendors must deliver as expected. Strong vendor risk management practices can help curb these risk management challenges.

The hiring process can play a significant role in your business, but it can be overwhelming if you don’t know where to start. When you’re ready to expand the team, clear goals can help you hire the right candidate.

1. Saves Time

Time is a non-renewable resource. The most important reason to focus on hiring right is that it saves time. 

When you hire the right people, they make you available for higher-value activities. Underperforming employees often take more time for the same tasks than those who perform well. To compensate, other employees do extra work, or managers double-check everything. It’s inefficient and stressful.

2. Cuts Cost by Reducing Turnover

Employee turnover can be expensive, upwards of one-third of an employee’s annual salary, especially if it’s not standard for your industry. 

Employees who don’t stick around cause wasted effort for onboarding, training, and signing or referral bonuses. In addition, you might lose out on revenue while understaffed. On top of those direct costs, bad hires may also take longer to onboard. 

Fortunately, hiring the right employees reduces turnover, giving you more time to focus on the core business. Ensuring an accurate assessment of your needs and clearly defining each role’s requirements makes it easier to find optimal candidates. 

It’s critical to note that sometimes hiring the right person for the job doesn’t guarantee they’ll stay forever. Additionally, there may be situations where you need to fill a role quickly, and it makes sense to pick an average candidate or temporary worker.

3. Creates Growth

The right candidate can onboard quickly and accelerate growth. Hiring someone ready to hit the ground running allows them to bring their skillset and experience to bear sooner.

Hiring motivated employees who fit your culture and values is a great way to keep your team operating at its best over the long term. They strongly desire to do well and will take ownership of their scope, helping the entire team get more done in less time—which probably means more revenue and new clients!

4. Increases Morale

If your company is thriving and growing, it reflects in the people who work there. The opposite is also true—if you’re not hiring and helping your employees grow, they may feel like you undervalue them.

Morale is contagious. Every time you hire someone new, you’re bringing in new energy and perspective that can help improve productivity for everyone else. You also want to ensure that person fits well with your existing culture so that no one feels like they don’t fit in with their new role.

The adverse ripple effects caused by bad hires can highlight the importance of hiring the right staff. It can lead to lower productivity and poor customer service. An employee not doing their job correctly affects the rest of the team, who need to step up to pick up the slack or fix mistakes. It leads to more stress and frustration for everyone involved.

5. Maximizes Productivity

Hiring the right employees is essential for maximizing productivity. It’s crucial to hire employees who have the skills and experience you need to achieve your business goals. When assessing potential new employees, ensuring they have the proper skill set and experience to get the job done will increase your company’s overall output.

The right people can help you reach new heights. You can be more productive because they engage with their jobs, invest in your company culture, and get along well with other employees.

Drive Growth with Great Hires

Finding suitable candidates is one of the biggest challenges recruiters face. They know the importance of hiring the right person and are constantly looking for people who will positively contribute to their company culture. 

Hiring is an excellent way to grow your business, but the process can be labor-intensive and expensive. This discomfort can cause employers to put off hiring as long as possible or skip steps in the process and hire the first candidate.

It doesn’t have to be that way. Hiring might be easier and cheaper if you have a clear idea of what your business needs. Remember that hiring someone who isn’t a good fit for your company can cost you time, money, and energy, while a great hire can be priceless.

  1. About the Author:

  2. About the Author:

    Heather Hubbard is a managing partner of Valesco Industries. She is responsible for managing the firm, strategy development, portfolio management, new investment origination, and team development.

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