I recently had a lunch with Howard Cox, Director of Business Consulting at Somerset CPAs. I asked him why it is difficult for business owners to hire “A” players. He mentioned many of the common themes I often hear, but Howard also provided an interesting answer from a financial perspective.
In order to attract and retain “A” players, a company must have 15% annual growth (double revenue every 5 years.) Which in essence means, a company must continually create opportunities and interesting challenges that will stretch people and keep them engaged.
He also said that the most significant hiring expense does not show up in your P&L . . . the cost of a bad hire or even the lost opportunity cost associated with hiring average players. Most business owners only see and measure the cost of acquisition.
For more interesting business insights from Howard, visit his blog: