A (0:05)

What's the cost of hiring the wrong person? You might think it's just a few months of wasted salary.

B (0:11)

Nope.

A (0:12)

Try 100 grand per team member. That's what it can cost you in lost time, missed opportunities, and cultural damage. And for business owners like you and me, that's not just a setback. It can actually wreck your momentum. But there's a way to avoid those expensive mistakes. Having the Right Hiring Process on this episode, Entree Leadership's John Felkins is going to break down the exact process we use to make great hires. Let's get into it.

B (0:46)

We've all done it. We've all made a hire we regretted. Maybe they look great on paper. Maybe they even crushed it in the interview. But once they were on the team, we regretted hiring them. They didn't carry their weight. They stirred up drama. When this happens, you can feel it in your gut, in your team, and in your bank account. That sinking feeling that what have I done? Moment. That's the pain we're talking about. And there's a reason this hits so hard. Bad hire can cost you in four different ways. First, it's freaking expensive. That hundred grand Dave mentioned? That's not a guess. Gallup says replacing a team member can cost up to two times their annual salary. And with the average salary now over $60,000, that means every bad hire could be draining at least $120,000 from your business. But the cost doesn't stop at the bank. Number two, a bad hire hurts your culture. When you let the wrong person on the bus, the whole team feels it. For one, if the person can't get the work done, someone else has to pick up the slack. And if we don't do something about that, that's called sanctioned incompetence. That's when you communicate to your team that it's okay to underperform. But it's not, because high performers don't want to carry someone else's load. Let that go long enough, and you won't just lose productivity. Morale will tank, and you'll lose your best people. Number three, a bad hire can cost you your reputation. Warren Buffett said it takes 20 years to build a reputation, five minutes to ruin it. A bad hire can wreck a customer experience in a single phone call or blast your brand all over social media because they hate their job and want the world to know it. Lastly, number four, a bad hire can cost you time. You'll waste time cleaning up their mess. You'll have to spend time constantly coaching, correcting, and documenting those conversations and then having to let them go and start the whole hiring process over again. You can either spend more time on the front end by slowing down, vetting well and getting the right person on the team, or you can spend it on the back end, retraining, refocusing, rehiring, and re explaining what should have been clear from day one. That's why we say hire hard, Lead easy. Hire easy, lead hard. If you're a business owner who's tired of rolling the dice every time you make a hire, you're not alone. The good news is there are three things you can do to start making hires you're proud of instead of hires you have to clean up after. It starts with attracting the right people. Before the interview ever happens, you've got to be crystal clear about who you are as a company and what you're looking for. At Ramsey, if you check our job postings, you'll notice something right away. We don't list responsibilities. We cast vision. We call it work that matters. Because we're not just trying to fill seats, we're inviting crusaders to join a mission that clarity starts with a compelling mission that sets the tone for who we are. Job descriptions that are brutally clear about expectations. Transparency. Like we work from work so people know exactly what they're signing up for. We want people to opt in or opt out fast. That way we only hear from people we know are energized to be here, not just looking for a job. We'll get right back to the episode, but first, do you remember when you only worked 40 hours a week? Now that you're in leadership, you do that by Wednesday afternoon. Look, you want to be a part of something meaningful. You want to make an impact and still have a life. But as your company grows, your calendar fills up, meetings stack on top of each other and you're doing more work that doesn't require your expertise. You don't have time to lead anymore. That's where Belay comes in. Belay matches you with qualified US based executive assistants, marketing assistants, and accounting professionals. Real people who can help you protect your time so you can delegate what doesn't require your leadership and focus on the work only you can do. Because growth doesn't come from doing more. It comes from doing what matters most. If you're ready to build a business that runs without running you into the ground, download Belay's free resource the 40 Hour CEO Work Week Planning Guide by texting ENTRE to 55123 that's ENTRE 25512,3. Now, let's get back to the episode. Another way to attract good people is through your network, because thoroughbreds run with thoroughbreds. That means our current team members are some of our best recruiters. And they're also our first line of defense against hiring someone who's a donkey. That's why we incentivize our team members to refer quality candidates. Be intentional with interviews. Interviewing isn't just about resumes and experience. You're looking for character and competency. Can they do the job? Do they align with your values? Are they someone you actually want to work with? This is your business. Why build a team of people you don't enjoy being around? And you can't escape the fact that the less time you spend getting to know people before you hire them, the greater the risk. They're crazy. So slow down. Ask better questions. Don't rush just to fill a seat. Also, don't outsource this to hr. You're the one who's going to have to lead this person. Once you've made the hire, set them up to win by having a strong onboarding process. Hiring the right person is only half the battle. You also have to give them the tools to succeed. Don't forget the basics. Do they have a computer? A chair that works? A clear place to land? Once you've got that covered, make sure they have a kra, a key results area document. It lays out in plain language what they're responsible for, what winning looks like, what key actions drive success. This creates clarity from day one for both the new team member and for you. Another thing we do is script out how they should spend their first 90 days. Not to micromanage, but to give someone confidence and support. We outline what they need to learn and read who they should meet. And then we check in on a regular basis over the first 90 days to see how they're doing. The new hire should never be left wondering, am I doing this right or what's next? That early clarity protects your time, your team, and your culture. The cost of a bad hire is just too high financially, emotionally, and culturally. So take the time to attract the right candidates with clarity and purpose. Interview for both competence and character. Onboard with purpose so they start strong. Yes, it takes time, but it's time invested in the right places. Because when you hire well, you don't just fill a role. You build a business that wins. If you'd like to dig in on all of this, we've got a guide that lays out the 12 components to a good hire. We'll leave the link for you down in the description.