KINGSTON, Jamaica – Former Manchester United manager, Erik Ten Hag, was recently dismissed by Bayer Leverkusen FC just 62 days after taking the helm. He had only three matches under his belt. This swift decision by Bayer Leverkusen came at a hefty price, as they realized they had hired the wrong manager. It was a bitter-sweet moment for Erik Ten Hag. It was unprecedented for a club to fire a new manager this quickly and early into a new season, just 62 days in charge. Despite the abrupt end, Ten Hag walked away with a severance payment of around six million pounds. This translates to approximately $1.2 billion JMD. Not a bad payout for just 62 days of work.
In Jim Collins’ book, “Good to Great,” he discusses the concept of “getting the right people on the bus.” Collins emphasizes that successful organizations focus on assembling the right team first. They prioritize individuals with the right skills, self-motivation, and cultural fit over creating a grand strategy. This approach involves rigorously hiring individuals with the right character and capabilities. Then, they fit them into the right roles.
The Cost of Hiring the Wrong People
Hiring the wrong person can be incredibly costly for an organization. It leads to financial losses, morale damage, cultural disruption, increased turnover, and potential legal issues.
Financial Losses:
One of the most significant losses from a bad hire is financial. Organizations may have to pay severance to a departed employee if termination is necessary, as seen in the case of Bayer Leverkusen and Erik Ten Hag. Additionally, recruitment expenses, including job advertisements and recruitment firms, add to the financial burden.
Damage to Morale:
Poor hires can negatively affect team dynamics, bringing productivity and creativity to a low. Conflict and internal fights may arise, causing the team to lose its chemistry and fall into mediocrity.
Cultural Disruption:
Hiring a team member who does not fit the organization’s culture can create a toxic environment for others. This disruption can demotivate employees and lead to conflicts, ultimately harming the overall work environment.
High Turnover:
A bad hire that is not culturally fit can demoralize others, reduce productivity, and increase the workload for other employees. This leads to frustration. If team members become overly frustrated with bad team members and a toxic environment, the organization’s best employees may leave for a more positive environment, triggering an exodus.
Legal Issues:
Organizations may find themselves in legal trouble if they wrongfully dismiss a bad hire, leading to lawsuits. Unfair and biased hiring processes can also result in discrimination claims. Terminating a bad hire too quickly can lead to legal disputes over severance packages.
How to Lower the Risk of Bad Hiring
To mitigate the risks associated with bad hires, organizations can take several steps:
Hire a Recruitment Company:
Partnering with a professional recruitment firm can help ensure that the right candidates are selected for the job.
Robust Vetting:
Implementing a thorough vetting process can help identify candidates who are the best fit for the organization.
Cultural Fit:
Ensuring that new recruits align with the organization’s culture is crucial for maintaining a positive work environment.
Training and Education:
Providing training and educating new recruits about the organization’s culture can help them integrate smoothly and contribute effectively.
By taking these steps, organizations can reduce the risk of hiring the wrong people and create a more productive and harmonious work environment.
