9 Ways Smart Business Owners Avoid Bad Hires

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9 ways smart business owners avoid bad hires

A bad hire costs far more than a salary. Research cited by the Harvard Business Review has put the share of employee turnover caused by poor hiring decisions as high as 80%, and the damage shows up in morale, client relationships and lost sales long after the exit interview. Here is how to avoid making one.

Before you interview

  1. Be specific about the role. Go beyond a generic job description and profile the traits and skills your team actually needs, with input from the people who will work alongside the hire.
  2. Separate non-negotiables from nice-to-haves. List personality and skill requirements in two columns before you meet a single candidate, so you are not deciding under pressure.

During the interview

  1. Ask behavioural questions. Responses grounded in real past experience are far more predictive than hypothetical answers.
  2. Don’t settle for half a fit. A candidate who meets only half your criteria is rarely worth the compromise.
  3. Trust your gut on red flags. If something nags at you in the interview, do not talk yourself out of it.

Before you make the offer

  1. Call references directly. A phone conversation reveals far more than a written reference letter ever will.
  2. Check their public profile. What a candidate posts publicly is a reasonable proxy for judgement and professionalism.
  3. Judge the person, not the pitch. A compelling personal story or a viral social post is not a hiring qualification on its own.

After they start

  1. Invest in onboarding. Research from the Brandon Hall Group links a strong onboarding process to significantly better retention and productivity in a new hire’s first year.

Frequently asked questions

What percentage of turnover is caused by bad hiring decisions?

Research cited by the Harvard Business Review puts it as high as 80%.

What is the biggest red flag to watch for in an interview?

A gap between how a candidate describes their experience and how they answer specific, behaviour-based questions about it.

Should I always check references before hiring?

Yes. A direct phone conversation with a previous employer reveals far more than a written reference.

Does onboarding really affect retention?

Yes, a structured onboarding process is strongly linked to better first-year retention and productivity.

Where can I get guidance on fair hiring practices in South Africa?

The Department of Employment and Labour publishes guidance on recruitment, employment equity and fair labour practice.

Further reading: How a toxic employee can cost your business thousands

Originally published in June 2016. Updated September 2026.

Tshepho Joel - author photo

Edited by
Tshepho Joel

Tshepho Joel is an experienced digital strategist with a proven track record of lifting user retention, leads, and revenue. Drawing on a robust background in performance marketing, he brings a data-driven, results-first eye to his work. Above all, he is dedicated to helping South African entrepreneurs start, fund, and grow their businesses.

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