If you had a chance to think about it, you’d realize that, whenever you hire a $10.00 per hour employee, it is the same investment as if you were to buy a $350,000 house! (Your monthly cost would roughly be the same; 40 hour employee = $1,600/mo. wages; 30 year mortgage loan payment = $1,600/mo.)
And this is precisely why you need to choose your next hire as carefully as you would a new home.
- When you buy a house, the first thing you look at is curb appeal, but you’d never buy based on just that. (Same goes for job applicants and first impressions.)
- You would never buy a house that didn’t meet all your basic needs. (Likewise, never hire anyone who doesn’t have the required mental and physical capacities, attitudes, personality, and skills you require.)
- You would also consider the neighborhood the house is in and pay for a professional house inspection. (Never hire without contacting both personal and professional references and doing background checks.)
- You might buy a fixer upper; something with potential. (You’ll maximize your ROI if you hire for attitude and train for skills.)
While both “purchases” represent an ongoing outflow of about $1,600.00 per month, the employee comes with all kinds of added costs, including training, management time, supplies, etc., as well as the fact that the employee’s costs will rise over time.
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This is precisely why hiring managers should “shop” carefully, evaluate every hiring decision as the long-term liability it is, and ask if the cost of the new asset will be more than paid for by the returns delivered.