Don’t Rush It: Why Hiring Poorly Can Stall Your Business

By Chris Whelan, Business Coach & Leadership Mentor based in Wellington, New Zealand

Why Hiring Poorly Can Stall Your Business

Ever rushed into hiring someone just to get the job done – and then regretted it? You’re not alone. Across New Zealand, small and medium-sized business owners face one of the toughest challenges in business: finding, hiring, and keeping the right people.

Hiring poorly doesn’t just cost money. It costs momentum, morale, and sometimes even your best staff. In fact, for many Kiwi businesses, one bad hire can undo months of progress.

Why We Rush

When a team member leaves unexpectedly – or when growth suddenly demands more hands – the pressure is on. Owners often feel they need to fill the gap immediately. A CV lands in the inbox, a friend recommends “someone fantastic,” or a quick coffee chat goes well, and the decision gets made.

It feels like relief at first. But the cracks soon show. The wrong fit disrupts the team, drains time, and stalls productivity. In small teams, which make up the bulk of our local businesses, the ripple effect is brutal.

There are three big reasons rushed recruitment happens:

  1. Immediate needs – The pressure to replace someone quickly outweighs the patience to find the right person.
  2. Underestimating impact – Owners don’t always realise how much damage one poor hire can cause to culture and productivity.
  3. No system – Recruitment is often ad hoc, left to gut instinct rather than a defined process.

 

The Cost of a Bad Hire

Here’s the sting: a single bad hire can cost 30 – 50% of that person’s annual salary. By the time you factor in recruitment costs, training, mistakes, lost sales, payouts, and the disruption to your team, the numbers add up fast.

But the bigger cost is cultural. One toxic person – no matter how skilled – can drag down your best performers. In New Zealand’s smaller workplaces, that effect multiplies.

The Four Cs of Hiring

So how do you avoid the trap? I use what I call the Four Cs:

  • Character – Will they do the right thing when no one is watching?
  • Calling – Do they feel “called” to this type of work, or is it just a paycheck?
  • Chemistry – Will they fit with your team and strengthen culture?
  • Competence – Do they actually have the skills to deliver?

Most owners jump straight to competence: “Can they do the job?” But competence without the other three is a disaster waiting to happen.

Two Client Stories

I’ve seen this play out many times. Let’s call one client “Joe.” Joe knew exactly the type of person they needed and had even mapped out a process to follow. But then a friend recommended someone “perfect.” Joe made a lone wolf decision—no references, no structured interview, no input from the team.

It fell apart within months. The new hire clashed with the team, required a payout to leave, and caused unnecessary stress. Months of wasted energy, money, and momentum.

Now, contrast that with another client who said: “We don’t recruit – we date.” Their process was deliberate. First, a coffee chat. If that went well, the candidate met the business partners. Then they met leaders across the business. At each stage, if anyone raised a red flag, the process stopped.

This approach tested character, calling, and chemistry before checking competence. The result? Stronger cultural fit and hires who stuck around and thrived.

Thoughtful Recruitment

Avoiding poor hires isn’t rocket science – it’s discipline. Here are a few practical steps:

  1. Define your needs clearly – Write a job scorecard. Know the outcomes you want, not just the tasks.
  2. Use structured interviews – Ask consistent questions that test all Four Cs.
  3. Involve others – Don’t hire in isolation. Get perspectives from across your team.
  4. Test in real scenarios – Give candidates a problem to solve. See how they think and act.
  5. Onboard intentionally – A good start sets new hires up to succeed fast.

 

Think about it like sport. The All Blacks don’t just ask, “Can you play halfback?” They ask: “Do you fit our system? Will you make the team better this season – and next?” Businesses should do the same.

The Payoff

Hiring thoughtfully isn’t about slowing down for the sake of it. It’s about building a high-performance community. Each hire should lift capability, culture, and momentum. The right people don’t just do their job; they multiply your impact.

As Jim Collins famously said: “First who, then what.” Get the right people on the bus, and everything else becomes easier.

So next time you’re tempted to rush a hire, pause. Ask yourself: Am I filling a seat, or am I building the future of my business?

Chris Whelan is a business and leadership coach based in the Wellington region, helping small and medium-sized business owners grow profit, build strong teams, and lead with purpose.

Want to connect? Visit www.chriswhelancoaching.com or email me directly at chris@chriswhelancoaching.com

Why Hiring Poorly Can Stall Your Business