August 18, 2016- ISSN# 1545-2646
Investment Guessing
So how much guessing do you do with your business when you are making an investment into it?
If you were to go to the bank to get a loan for $100,000 they would ask you a bunch of questions and have you prove and validate your worthiness to repay the loan.
If you act like the bank, you would ask yourself hard questions about your business. Is the investment going to return value and profit to the bottom line? Is this an operational cost? How is the investment justified in improvement of operations or services to your customers?
You would not just guess but do some real investigating before you launched forward. You would rely on data from your financials. You would rely on sales forecasts and performance numbers and goals achieved.
So why then do so many business leaders recruit and hire without real data? Why do they rely so much on gut feeling and instinct when on average they only hire someone a few times a year and their skills in that area are rusty?
I’m not dismissing instinct or gut level input but with out additional insights then it is more like guessing than refining and validating your instincts.
Depending on which authority you want to take input from, a bad hire can cost a business anywhere from $25,000 to upwards of almost $200,000 per year. The cost is actually on the higher end of the scale in some small businesses because they don’t have the option for additional staff and thus run with fewer people. A bad hire impacts the company more dramatically when no one else can pick up the broken pieces.
This week take a look at your recruiting and hiring practices. Do you even have a process? Do you follow it? Have you incorporated various elements to gain more insights into the candidates and how and why they can contribute to the success of your business? Do you bring technology into the process to assess for skills, competencies, and cultural alignment?
If you don’t have solid answers to all of these questions you need to call JKL Associates at (313) 527-7945 and begin the dialogue into reducing your investment guessing on recruiting and hiring practices.
Questions or comments – email us at partners@jklassociates.com or call our Office at (313) 527-7945
Copyright – JKL Associates 2016
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