The 5 Biggest Hiring Mistakes Every Small Business Makes and How to Avoid Them 

Don Georgevich, Business Consultant

By Don Georgevich

4-minute read - Published November 8, 2024


Hiring is the most crucial part of every small business. It’s the foundation for growth, innovation, and long-term success.

Get it wrong, and it can cost you everything—from productivity to profitability. But here’s the kicker: every bad hire doesn’t just waste resources—they drag down your entire team.

Studies show that one bad hire can impact productivity by 30% or more.

In contrast, companies with structured and strategic hiring processes are 3.5x more likely to have high-performing teams.

Today, I’d like to introduce you to the missing link in your business—Scientific Hiring.  It's a powerful approach designed to make your hiring not just better, but smarter.

By the time you read this, you’ll have a game plan to leverage hiring as a growth strategy, one that will transform your business.

Today, you’ll learn how to:

Use data, not guesswork, to make confident, informed decisions
Hire for growth to ensure you build a team that evolves with your business
Master cultural alignment, which is the secret ingredient to keep employees engaged and committed
Define roles with clarity to set the stage for success from day one
Onboard like a pro and turn every new hire into an asset, not a liability

1. Use Data to Drive Your Hiring Decisions

According to Harvard Business Review, 81% of managers admit that gut-based hiring decisions have led to bad hires.

In contrast, companies that use data-driven processes are 36% more likely to have strong employee performance (Talent Board).

These numbers make it clear—data beats intuition. Relying solely on your instincts is a recipe for inconsistency and wasted resources.

A structured, data-driven approach reduces bias and improves hiring accuracy.

What You Can Do:

  • Build a scorecard for each role that measures technical skills, cultural fit, and growth potential.
  • Use pre-hire assessments and structured interviews to collect data on candidates.
  • Ask behavioral questions that are aligned with your scorecard to measure a candidate’s skills, cultural fit, and potential to succeed in the role.

  • Use this data to make an objective hiring decision.

Consider this...

Assessment tools provide valuable insights, but they’re only one piece of the puzzle. To truly gauge a candidate’s potential, you need to master the art of Socratic Interviewing which is the foundation of the Scientific Hiring Method.

My Advice:

Create a scorecard and list the specific skills, experiences, and qualities you’re looking for, then assign scores to each. This keeps the hiring process objective and allows you to evaluate candidates against a clear standard.
Create a set of practical tasks and scenario-based questions that mirror real job responsibilities. This approach gives you direct insight into their skills and fits with your company culture, helping you make a more informed decision.
Have candidates complete a focused sample task related to the job. For example, ask a developer to solve a coding problem or a writer to submit a brief article. This allows you to evaluate their work quality and approach to specific tasks.

My Mistake:

I often went with my gut and hired based on first impressions. It felt right at the time, but it wasn’t effective. I ended up hiring people who weren’t the right fit which cost our company money, time, morale and even lost clients.

To avoid bad hires, implement a structured interview process that focuses on measurable results. Identify the key skills and qualities required for the role, then create a list of carefully crafted questions to evaluate each area.

This approach will help you assess skills and cultural fit without relying on third-party tools. Remember, hiring without data is like driving blindfolded—it’s risky and costly.


How to Make Smart Hiring Decisions

2. Hire for Growth

The Society for Human Resource Management (SHRM) reports that only 35% of hires are prepared for future roles.

That means two-thirds of new hires may not be able to keep up as your business scales. Additionally, McKinsey found that high performers are 400% more productive than average employees.

When you hire only to fill immediate gaps, you’re limiting your growth potential. This is why you want High Performers working for you—because they are adaptable and eager to learn and can have a huge impact on your business.

What You Can Do: Hire with a long-term vision. Use meaningful situational questions during interviews that assess a candidate’s adaptability, resilience, and hunger for growth.

Questions like this allow you to make informed hiring decisions.

Most importantly...

Be clear about the type of responses you aim to hear. Know what success looks like in each answer, whether it’s demonstrating problem-solving skills, a cultural fit, or the ability to handle pressure.

My Advice:

Map out growth plans for each role and consider where the role could be in 6 months, 1 year, and beyond. Define specific growth targets.
Ask growth-oriented questions like, “What new skills have you learned recently?” or “How do you adapt to changing priorities?” High performers are adaptable and thrive on challenges.
Once hired, create a personal development plan for the employee that outlines skills to learn, growth areas, and potential career paths. This approach sets clear growth targets and provides measurable performance metrics for annual evaluations.

My Mistake:

In the past, I hired people in a hurry just to fill roles. I felt the pressure to keep things moving, and I ended up with employees who weren’t aligned with my long-term goals. This slowed down progress and led to frequent rehiring.

To avoid bad hires, be intentional about hiring people who not only meet today’s needs but also fit your business’s future direction.


3. Prioritize Cultural Fit

Columbia University research shows that companies with strong cultures have an amazingly low 13.9% turnover rate, while those with weak cultures experience a 48.4% turnover rate.

Additionally, employees aligned with company values are 3 times more likely to stay long-term (Deloitte).

Why It Matters: Cultural misalignment doesn’t just increase turnover—it undermines morale, productivity, and the overall work environment.

What You Can Do: Define your core values and hire people who align with them.

Ask questions like, “What does success look like to you in a team setting?” or “How do you handle disagreements at work?” and listen for responses that reveal their communication style.

Pay attention to how they define success and navigate conflict, as these insights can indicate their potential fit within your company culture and team dynamics.

What is your company culture?

If you’re not sure how to describe your culture or core values, ask your employees. They can provide honest insights about what the company truly stands for and why they work there. Their feedback can help you define and refine your culture.

My Advice:

Create specific behavioral questions to ask about past experiences that align with your core values. For example, “Describe a time when you had to work through a conflict with a coworker.”
Bring candidates in for team-based interviews to see how they interact with potential coworkers.
Integrate your mission and core values into every step of the hiring process—from crafting job descriptions to framing interview questions.

My Mistake:

I used to hire based purely on technical skills, thinking that was the most important factor. But I quickly learned that even highly skilled employees can cause disruptions if they don’t fit the culture.

The result was lower morale and higher turnover. To build a cohesive, high-performing team, make cultural fit a priority from day one.


4: Clearly Define Roles from Day One

Gallup research shows that only 50% of employees understand what is expected of them at work.

This confusion leads to a lack of productivity, frustration, and disengagement. Additionally, clear job roles reduce turnover by 27% (Glassdoor).

Why It Matters: Without clear roles, employees are left to guess about their responsibilities. This uncertainty creates inefficiencies and unmet expectations, which hurt both morale and performance.

What You Can Do: Write detailed job descriptions that outline responsibilities, necessary skills, and key performance indicators (KPIs).

Include a 30-60-90-365 day plan that sets expectations for the first three months and the months to follow.

Be clear

Use a job scorecard to define the specific skills, attributes, and performance goals needed for the role. This helps you evaluate candidates objectively so you can make a data-driven hiring decision.

My Advice:

Create a 30-60-90-365 Day Plan: Set clear, measurable goals for the new hire’s first year, broken into milestones. Review this plan with new hires on day one to establish expectations.
Clearly outline key performance indicators (KPIs) and role-specific goals in the job description. For example, “Increase social media engagement by 20% within the first 90 days.”
Conduct meetings at key intervals—first week, 30 days, 60 days, and 90 days—to ensure progress, address challenges, and maintain alignment with the role’s objectives. This makes new employees feel supported and reduces the likelihood of early turnover.

My Mistake:

In the early days, I hired people without providing clear job descriptions and assumed they would "figure things out" on their own.  This "trial by fire" approach led to confusion, lost productivity, and unmet expectations.

Just a simple 30-60-90 day plan would have set employees up for success, saved time, and improved overall team performance.

To avoid misalignment and improve retention, create a job scorecard and detailed job description that outlines the key skills and goals for the role. This keeps everyone aligned and engaged and helps retain top talent.


How to Make Informed Hiring Decisions

5. Invest in Onboarding and Development

Gallup reports only 12% of employees strongly agree that their organization does a great job onboarding.

Meanwhile, employees who have a structured onboarding experience are 69% more likely to stay with the company for three years (SHRM).

Why It Matters: Onboarding isn’t just about introducing new hires to the company—it’s about setting them up for long-term success. A well-onboarded employee is highly engaged, more positive and productive.

What You Can Do: Start onboarding before day one. Send new hires a welcome packet that includes company materials, an overview of their first week, and access to online resources or training modules.

Set up weekly check-ins during the first 90 days to provide feedback and guidance.

Onboarding is crucial...

Because it sets the tone for a new hire’s experience, shapes their understanding of the company culture, and establishes clear expectations. It also boosts engagement, accelerates productivity, and dramatically lowers the risk of early turnover.

My Advice:

Send welcome emails, provide training resources, and outline the first week’s plan before the employee starts.
During the first 90 days, set up regular feedback sessions to address any issues and provide guidance. Continuous feedback increases engagement by 4.6 times (Gallup)..
Offer opportunities for continuous learning, including access to online courses, workshops, and mentorship. Employees who receive continuous development are 94% more likely to stay (LinkedIn).

My Mistake:

I often hired people without clear job descriptions and expected new employees to figure things out as they went, using the "tribal method" of onboarding—where they relied on picking up information from colleagues and learning by observation.

This led to confusion and wasted time.

To keep new hires engaged and prevent early turnover, implement a structured onboarding plan that includes training, feedback, and clear performance metrics. Set regular feedback sessions to help new hires feel valued and supported.

Remember, onboarding isn’t a one-time event—it’s an ongoing process that creates high performers.

When you're ready, there are 3-ways I can help you

1.Scientific Hiring Essentials: This free email series introduces you to the core concepts of hiring top talent. Perfect for any business looking to build a high-performing team without the guesswork. You’ll learn foundational strategies to make smart hiring decisions and avoid common hiring mistakes.

2. The Seven Master Steps to Hiring A-Players:  If you hire 5 or more people a year, this could be the most valuable book you’ll ever read. Inside, you’ll find proven strategies to make smart hiring decisions so you only hire the best people onto your team.

3. The Scientific Hiring Academy:  This is my flagship course on how to hire A-Players. Most businesses struggle with hiring superstars. This course is designed to transform your hiring process and enable you to consistently attract and retain top talent. In this program, I’ll guide you through actionable, proven techniques to simplify and streamline your hiring process so you walk away with the skills needed to hire the best people for your business.

Interested in improving your hiring? Click the button below to talk with me.

© 2025- Scientific Hiring Group - All Rights Reserved

Don Georgevich, Business Consultant

Contact Don

Have a question about improving your hiring or just want to say hello? I'd love to hear from you! Send an email or call/text me on my direct line.

don@dongeorge.me

call or text:  440-655-1725

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