ing costs are the most important. Every new hire comes with recruitment costs, advertising, interviewing and onboarding. If a new person leaves, or we ask them to leave before we have seen the benefits of that person, the investment is lost and the costs are repeated. In retail and hospitality, efficiency is key. People who are not a good fit may struggle to do their jobs, resulting in lower productivity. This can slow down operations, increase workloads, and impact customer ratings. Bad hires often lead to higher turnover rates. High turnover can be costly because it means constant recruiting, hiring, and training, which is common in this industry. This means that sometimes you can feel like you are just “surviving” to provide the service, rather than moving into a feeling of “thriving” where you are making more profit. Reputation Costs In retail and hospitality, the customer experience is what makes or breaks a business. People are the face of the company and shape customer perception. Bad hires can impact many areas. People who lack the right skills, attitude or training provide poor customer service. This can mean they don’t care about customers, which can lead to negative reviews and a damaged reputation. Consistency is key to building a trusted brand. People who don’t act in line with company values ​​can lead to terrible customer experiences. Cultural Cost The wrong people can significantly impact your company’s culture and morale. If one person doesn’t perform well or doesn’t fit in with the team, it not only affects their performance, but also the morale and performance of other team members. The saying “one bad apple spoils the whole wagon” holds true for people. High-performing employees can become demotivated when they have to work overtime and handle the workload of people who are underperforming. This leads to a drop in productivity and, in the worst case, top performers leaving the company and becoming harder and more expensive to replace. Every company has its own culture. People who don’t fit well into that culture cause more conflict, which can create a toxic work environment. Opportunity Cost Hiring the wrong people can also bring problems that interfere with the vision you’re trying to achieve. The wrong people slow down company growth. For example, a poorly performing manager can negatively impact retention of those reporting to them, meaning it takes longer for you to realize growth in your company. Poor employees lack the skills to find or capitalize on new business opportunities, causing the company to fall behind competitors who are better positioned with the right people. Strategies to Find the Right People Slow Down Hiring Processes: Hire for hire and train for skills Don’t rush through the hiring process because you’re busy, especially for key positions like management. Ongoing Training: While training is expensive, what’s the cost of no training and employees influencing your culture? Continue investing in training so your employees keep getting the message of what you’re trying to accomplish. Positive culture: A strong culture can help retain top talent and create a workplace where people enjoy working and recommend it to others. Performance management: If you don’t have the right people, get them out of your company quickly. Address performance deficiencies early and set the standards for the right behavior. By focusing on these strategies, retail and hospitality companies can minimize the cost of hiring the wrong people and create a more productive and positive work environment. And the right people in the right jobs can have a big impact on your bottom line.