Category Archives: Ryan Hudson

Smart Hires Lead to Less Fires: Top 4 Actions to Take Before Hiring New Employees

Whether a newly formed start up or a publicly traded giant, hiring new employees is critical to the growth and success of any business.

Even more important, is making the RIGHT hire.

A single bad hire can cost a company more than several, tens of thousands of dollars!

Here are the Top 4 Things every company should do before making a new hire:

1. Background Check—Companies not performing background checks are leaving themselves open to a wide range of liabilities.  Negligent hiring lawsuits continue to be on the rise and if your new hire injures someone while on the job and due diligence wasn’t completed in the form of a background check, you can be held accountable and sued.  While some may argue that performing a background check can be costly, the cost of a negligent hiring lawsuit can far outweigh that of any background check.  These checks typically cover drug screening, criminal records, credit history, and driving records, and are more than worth it to minimize the risk of any unforeseen lawsuit.

2. Confirm Industry Credentials— Most background checks will confirm prior employment claims, however it is also important to get a few industry references.  Ask the candidate for 3-4 professional references who can confirm the candidate’s ability to perform, character and work ethic.  Be sure to find out the relationship of the reference to the candidate, how long they have known each other and any prior successes that would prove helpful in the role they are currently being interviewed for.

3. Make sure you can afford it— While most established companies understand the true cost of a new hire, many companies in their infancy can greatly underestimate the actual cost of hiring.  On average, a new hire costs roughly 40% more than their base pay. The cost of taxes, health insurance, workers’ compensation and paid vacation add up quickly.  And this is just the fixed expenses.  What about the time it takes to also train the new employee?  Before venturing down the hiring road, make sure you are prepared for the true cost associated with a new hire.

4. Culturally, how will this new employee fit in?—You hear it all the time in sports, ‘We’ve got a great clubhouse’… ‘so much chemistry between the group’ and every other horrible sports cliché. Great teams come together and unite in a way that brings out everyone’s best attributes.  Your staff is no different.  You and your employees have created a culture and it is important to think about how a new hire will affect this.




About the Author:
Ryan Hudson is the Vice President of Business Development for Recruitment Services at JBN Consultingand for the industry leading Job Board and Resume Database at