One of the most important things you can do when you’re running a business is build a reputation in the field. It helps to attract funding, build a client base, and also get you the best talent when you’re hiring. When you’re generating some buzz and excitement about your product and your working practices, talented people beat a bath to your door, so you can pick from the best rather commit to an exhausting search.

It’s difficult to bottle lightning: sometimes a reputation accumulates around you because you were in the right place, at the right time, with the right idea, and if you’re not trying to force things can damage your reputation rather than improve it.… Read the rest

The true cost of a bad hire is surprising. The US Department of Labour estimates that hiring the wrong person costs your company upwards of 30% of their first year’s salary. It also shakes the confidence of other employees in the robustness of your hiring process and the decision-making of the company in general. A really bad hire can cost you good employees, as they burn out trying to compensate for the new starter’s errors.

The higher up the chain of command you go, the more dramatic the impact of a new hire can be, for good or bad. A good executive can inspire people to go further and be more productive well outside their direct reporting chain, while a bad one can demoralise a whole company if something isn’t done.… Read the rest