The 3 Deadliest Hiring Mistakes Start-Up Companies Make

Turnovers not only kill a company, they demolish it.  What exact

variables lead to turnovers?  Running an executive search firm and

seeing hires turn out both correctly and poorly, I have come to:


1. Remote Representative – Management is difficult enough 5 feet away,

let alone 50+ miles.  Too often, companies feel as if they need

employees all over the U.S. when clients don’t want face-to-face

visits like they used to.


When starting your business, it is imperative that your employees

become engrained in your corporate culture.  To think that monthly

visits, car allowance and a BlackBerry will take care of not having to

pay additional rent, you are not only wrong, you are about to witness

a turnover.


2. “Upside, Upside, Upside!” – I consistently have clients calling

into my company grossly underestimating what they should pay their new

employees only to justify disgustingly low pay with the “sky is the

limit” pitch.


Anything looks like the sky when you start at a dollar altitude of

zero.  As a small business owner, if you don’t pay, the hire doesn’t

work out.  The opportunity cost of training the new employees to

replace the last that left is immense.  You’ll put yourself in

bankruptcy searching for that one employee.


And make no mistake, “employee” is the right term because these

individuals, instead of being entrepreneurs, want a paycheck.  Give it

to them.  If you can’t afford an employee, don’t bother until you can.


3.  Hiring Cognitive Dissonance – For anybody who has studied the

human decision-making process, the aforementioned phrase means

something to them.  In hiring terms, it translates to: stop

interviewing half the United States and make a decision.


I refer to it as “Hiring Cognitive Dissonance.” Many small business

owners think it beneficial to interview 10 applicants and feel as if

the rule “the more the merrier” applies to the hiring process.  It

could not be further from the truth.


From the 5 years that I have been in the staffing business, I have see

that companies who are interviewing more than 5 job applicants for one

position don’t end up making the correct decision.


Small business owners get too excited upon hiring applicants, though

they soon learn that maybe that 2nd or 4th job seeker who now has a

job would have been perfect.