You are listening to trinity employments, eight player Matchmaker podcast starring your Tulsa Staffing host and the cofounder of Trinity Employment Specialists. Cory Minter. Hi, I’m Corey and this is Ethan May.
We’re here with the eight player matchmakers and today we’re going to be talking about 19 hiring mistakes that managers make, which means that if you’ve listened to any of me in Ethan’s podcast, the likelihood of us getting through this and in the time period that we’re going after is, which is 15 minutes there. It’s very low. We’re going to break this up into two parts and uh, and so you want to pay attention to this. Some of these things are very, very interesting. So if you are struggling trying to figure out like why, why am I making the wrong hiring decisions? One, you’re not alone. A lot of people have made some really poor hiring decisions even sometimes even for Trinity. It’s been kind of a season of that sometimes. And you know, it’s not just bad on the employer, it’s, it’s important for employers realize that this, it’s also bad for the employee.
It’s just, it’s one thing that you want to try to avoid at all costs. And so we’re going to be talking about some things that hopefully we’re going to improve decision making or improved the thought process when it comes to trying to find the right person for your culture in that particular position. Um, and just the right seat on the bus. So, um, we’re going to, if you, if you are always looking for new content on these type of topics, we would love to be a resource for you. And we would love if you find this content helpful to share this with other friends, uh, that are in the same likeminded stages you are. You can go to our Tulsa Staffing email@example.com and we have a podcast tab. You can see all of our podcasts there. Uh, we want to go ahead and get started and because we have 19 action items we’re going to be talking about fly through.
We might want to go ahead and get started. So Ethan always starts us off with some statistics to get us thinking in this direction. Yeah, sure. So we’ve got stats from an organization called Gartner. They said the 20% of all hires are bad hires or regretted decisions. Well that’s a lot. They did a study, actually, they did a study over in Europe, in the UK. And so we’ve got some conversions here. They’re going to give stats about pounds, British pounds. And we, Courtney and I, after arguing for about 10 minutes on the conversion rate from pounds to dollars realized we were saying the same thing. There’s a lot of fun. We should’ve recorded it. You would have had at least five minutes. Exactly. Cheerio. Yeah. But we’re trying to fly through it, so we’ll go quick. But um, according to the office of national statistics over in the UK, so that the average UK salaries are on 27,000 pounds, which comes out to about 34,000 US dollars.
Um, and they said though, that that study said that an estimated five times what the annual salary will be will be how much you lose in making a bad hire. So an average salary coming out to about 27,000 pounds or $34,000, they would say that a company on average, a bad hire would cost them in excess of 136,000 pounds or in US dollars would be $172,000 just by making a bad hire. And you know, when, when you look at the statistics in the United States, I’m telling you, man, that 20% is a good percentage on your bad hearts versus good hires. Um, in most statistics that I’ve read in the United States is you’re around 40% making a wrong decision. Um, we, we’ve been doing this for a long time. I’ve always bragged on the fact that we get it right 80% of the time. And so that what that means is, is we’re getting it wrong 20% of the time.
But when you stack that up to national averages, holy smokes. I mean, we’re smoking it over here. So I’ve always been proud of that. I would almost be willing to say that that 20% is going to fluctuate on the level and competency of your manager. Um, when, when you think about a bad management may and people quit bad managers all the time, um, and uh, you get a manager that wants to hire someone underneath their competency and you’ll just keep going down and down and down, you know, and, and so, you know, great companies have good managers and good managers I would imagine would be at that 20% mark. But here in the United States, I would say you would need a great manager and a good hiring process to get that 20%. Yeah, definitely. And like you said, it kind of depends on, on the competency of your managers, but think about it this way as well.
What if you are hiring for a really, really high level position? What if you’re hiring for a CEO that makes, you know, four and a half million dollars and a, that’s the wrong person that’s going to cost her business. What 22 and a half million dollars? They say that the higher the level of the position or the more influence that that person has, the more of a devastating blow because you get somebody at the executive level and they, they make some, you know, some, some decisions that are not beneficial to the company. Listened. You’re running off customers in drones and they’re going somewhere else and to get them back, I don’t know how expensive it is to get back each particular customer that you’ve lost, but you know, depending on your business, it could be, you know, five to 100 you know, to thousands of dollars to get just that one customer on back, that executive ran off.
So you’re not just talking salary there, you’re talking a huge impact on the business as a whole. Yeah. And as the business longterm, you know, I mean with, with our company here at Trinity, you know, so much of, of what you know, we thrive on is really great relationships with companies that come back and come back and come back and want to use us over and over and over. And so, I mean, if we hire someone that’s terrible and they really burn bridges, burn bridges with 15 companies, I mean that’s 15 companies we just lost and we have to work hard to get back. I mean that we’ve had that happen here before and, and listened it, it doesn’t just take money to get them back. It takes a lot of time to get them back in. They’re going to have to learn to trust you again and listen, it’s easier to trust someone the first go round, but after you’ve been burnt man, it takes a lot of time and finessing to get them to be open to trusting you again and listen based on all of our life experiences who can blame them.
Yeah, definitely. And, and not only does it take a lot for them to give you another chance and then you really still have to then earn that trust. I mean, we just got a client that Cindy, one of our Tulsa Staffing sales reps has been working on for like two years and, and we’ve been working on getting them back for the, yeah. Over over two years and a, and we just got him back. And even then, they’re like, here are a couple of jobs. And it was all because of a staff change. That was it. Yeah. And, and really this person didn’t do a horrible job. Yeah. I don’t think it was just, it wasn’t a, you know, they didn’t really fully understand. And really it all boils down to management. Um, we didn’t realize that they didn’t fully understand, so we didn’t go in and put the extra effort in.
And so, listen, I don’t want to air dirty laundry at Trinity, but I also want to be authentic that, listen, we’re, you know, we’ve got those things too, but that, that was just a management issue and we just had the wrong person on it. But you are exactly right. Holy smokes to two years. That’s just since Cindy’s been here, we know a lot of force on it. Got here. Exactly. Yeah. Yeah. But, uh, but yes and man, she’s done such a great job and then you play someone right out of the box, you know, and so, and so we’re on our way, but still, you know, it, that stigma’s still there. We got to still overcome it and we will. But uh, but we’re on the right track now. Thank you. It’s definitely, I think, remember when we started this podcast, we were talking about trying to go quickly through it and I feel like we’ve been burning a lot of time.
We haven’t got door action points yet. Hopefully your story was worth while. Ethan, whatever man, what’s a, I got a good quote to lead us into our, into our first, into our first point. Okay. Um, we, we’ve got a quote from Kate Mcmillan. She is a manager of talent acquisition and programs over at a company called infusion soft. Um, and she says this infusion soft strategy for recruiting is similar to its customer strategy. We make our candidate experience similar to our customer experience. Our candidate formula is engage in form and transform much like our customer formula, attract, sell. Wow. Man. And this is really important because our Tulsa Staffing first point is not treating our great applicants, lock our great customers. Big Mistake, big mistake. Listen, especially in, um, today’s, uh, employment market. We are in an employees market. That means that they have options most likely.
And so you really need to wow applicants, get them to want to work for your company. And there are all sorts of ways, um, that you can do that. You know, one, one of the ways that we do is we bring people in to let them see our culture in how our Tulsa Staffing people work, uh, together talk with one another. Um, we, we bring them in for a working interview so they can see people working around, at least the last person that we hired. One of the things she said when I saw her walking out of the building and she’s like, you know, I just, when I came in and I saw your culture, that’s what made me want to work there. And so that is one of the ways that we, um, we use that to try to, uh, get applicants to get excited about us.
Um, but different people can do different things. But I will tell you this, keeping them informed throughout the process is extremely important. So if it’s going to be two weeks until your manager gets backer, well we can’t make a hiring decision until Susie gets back and Susie’s on vacation, you know, it’s summertime coming up or a lot of Florida Disney world trips going on. And so if Cindy’s in Florida or whoever the manager is that needs to be there to be able to meet with them, make certain that you are very clear with them, we will be making this decision as quickly as possible. We are very interested, we just need you to meet with Cindy. Um, and so Cindy is going to be coming back on this date we’re going to make, we’re going to call you and get that scheduled. That letting people know that really gives them a lot of peace and sometimes they’ll hold off on accepting a job piece.
And then I think they also, they trust you more. I mean, how much more would you trust someone who’s just honest and open and says, Hey, listen, we are really interested in, um, we’re not trying to just forget about you. We just have to wait for this person. And that, that makes them initially in immediately trust you all, all the more well, but I, I will tell you when, when you are unemployed or when you are trying to make a decision as big as my next career move, you know, you’re going to be changing your Tulsa Staffing time at one place and going to another place. You’re gonna spend more time there than you will your family. That’s a big decision. And so when you put the weight of that decision and then you throw in not knowing and just hoping and wondering where are they interested, um, man, you leave.
Most people are going to go to the negative when they are in doubt. And so you, one one way to flip that around is information gives them power and um, that will give them strength and peace of mind. And that is one of the my number one things that I would recommend. Definitely our Tulsa Staffing next quote that’ll lead us into our next point. We’ve got JT O’donnell who is the CEO of career realism and say that 10 times fast career roles on, uh, the biggest mistake I see startups making is hiring people without a clear sense of how their work will justify the cost of hiring them. Now our next point is failing to understand the cost slash benefit of a new employee before you hire. And so we were talking about this just earlier in that is getting not in this podcast, but when a private conversation between me and Ethan, I’m not understanding what a PR, what this person has the potential to add to the company, um, when financially is really, really important for you to know.
You need to know a timeline of when you want this person to start contributing and making money for the company and not understanding that is, it can be really crucial because you might hire someone that you really have no business hiring or you don’t have the bandwidth yet to, uh, to justify the higher, you know, we, this, we just hired someone where we were really making a decision, is this the time to do this because this person just came available. But we have an entire different segment that we can go into if we had the bandwidth at which to go do so. So, uh, me and amber ran numbers on exactly how much money we believe if things go well, it will contribute to the bottom line at Trinity. And knowing that number is really, really helpful, at least from a management standpoint. Yeah. And again, it goes back to that saying that we say all the time, and you just said a second ago, knowledge is power.
You know, information is power. Um, like you said, that having that knowledge of those numbers and what you needed enables you to make a better, more power, empowered decisions. It just lets you know if you’re winning or failing. And that’s really important because it’s what’s worse. Ethan is getting towards the very end of the year and then run a numbers ago. We were losing money every month and had no idea where we brought in a million. Sure. But we spent 1.2, whoops. Oh No. Uh, that’s a, that’s tough. You know, the point too makes it sound very small until they realize that it’s in millions and that’s $200,000. That’s a lot of money. Great. I got a gun. I got a great quote. Um, from Diane Helbig. She is the growth and accelerator, um, agent and change agents. She has it, pardon me, a growth in accelerator and change agent.
But she says a lack of clarity is a big mistake in hiring people. Startups need to be sure that they have real clarity around exactly what functions they need to fill. They need to, they then need to decide if it’s something that requires an employee or an outsourced solutions. Too many startups decide to hire when they’re need can be met by a contractor. So we’re having a lot more people in the United States. Um, utilize, um, what, what many people are calling the gig economy. I believe that the only relying on a gig economy means that you’re, you’re likely not going to get an expert necessarily in a field. Maybe you will, maybe you’ll get an expert in the field but maybe not an expert in your company. So you’re running a little bit of a risk here, but, but this is something that trinity does.
We provide temporary staffing for people and we can go out and find specialists that would work only for a temporary type basis. Um, it’s a smaller percentage of what our company does. Um, but this is something that is really important for people to think about because, um, think about a three month’s salary versus a one year salary and you could save your company a good deal of money when you just really need to get that project knocked down. Just need a freelance and instead of a full time employee. So important, so important. Yeah. Um, well sliding into our next point a Alita some with a quote from Kate Kendall who is the founder and CEO at uh, at cloud peeps. I don’t know what that is, but um, sounds cool. As startups can often hire a good person but at the wrong stage of a company’s life and the early days need to optimize for those comfortable with certain uncertainty change less structure and a flat hierarchy, a star higher from a brand name company might not turn out as expected and make sure you also have a good mix of tech to non tech talent.
So our, our, our next topic is not hiring employees that thrive at each stage of the company life cycle. I’ve, I’ve done a lot to study the stages of company life cycles and in fact we are on our third, from my understanding, uh, I’m almost certain that’s, you know, you build up and then you plateau, you build up and plateau again, build up and plateau again and at each different stage you need a different type of person and hiring the same type of people that you didn’t. Stage one is likely not going to work when you’re in Stage three. It’s, it’s a complete different ballgame. And so you’ll need the kind of people that can navigate a fast changing landscape, you know, with little oversight and guidance and quickly learn new tasks as they become available. And it’s really important that you hire people that can keep up with your, with your growing status.
You know, we’ve always been at, you know, most of our Tulsa Staffing good years are at a 20% growth a percentage in that, that nationwide that is an astronomical growth. You know, you have some companies that will double in size and really do some crazy things, but a lot of times when you see companies that double in size and get really, really crazy with, with growth, I mean you never want to turn down growth, don’t get me wrong, but if it gets that quick, that fast, there’s going to be a lot of cracks revealed. Sure. And a lot of things are going to get missed in the quality at how you service your customers is likely not going to be high if you’re growing at that speed. Really a 20% growth is about as fast as you can grow and still keep the quality and not creating unbelievable chaos.
Yeah, definitely. I mean that was one of the sentences there in that quote from Kate Kendall, a star higher from a brand name company might not turn out as expected. Uh, is true because like you said, growing that at that rate, um, reveals a lot of cracks. I mean like grow, like growing pains, you know, if, if you are going through as a kid, oh, going through growth spurts, it hurts. And a, not all, not all new hires or new, you know, awesome candidates or employees will really enjoy that. Well with a, with a small company like ours, you heart a big great star from a brand name company. In our Tulsa Staffing company, you’re going to be doing more of a variety, whereas you get into a big brand name company, the likelihood is that it’s only going to be, they’re only going to be doing a small little window of one thing over and over and over again.
And uh, and that, that can be, if that’s what they expect coming in there, you probably lost a lot of money because they’re not your, they’re going to either quit or you’re going to need to terminate him or you know, maybe they’re moldable and you can work with them. But the learning curve is going to be there. Uh, we need to probably go into our Tulsa Staffing second segment cause, uh, cause of the time here. Um, but listen, if trinity can help you in any way, please give us a call. We’re going to be, uh, we would love to be able to help you. We’re going to go into our Tulsa Staffing second segment, so stay tuned and you’ll see the second segment there, but you can, you can visit us firstname.lastname@example.org or like I said earlier, you can give us a call at (918) 622-2588.