The Price of Bad Employees
(New York Times) — Success in business is the culmination of many decisions, actions and behaviors. Good customer service feeds customer referrals, good management feeds efficiency, and good engineering feeds good products. A less obvious but equally powerful force is the virtuous cycle of money.
Money is a valuable and critical component of building a business, especially a small privately held one that has limited access to capital. Every dollar spent could have been used for something else. Staffing requirements, receivables, equipment, technology and marketing are all like hungry teenagers gobbling up every available dollar. Unlike other actions and decisions made in business, the spending of money is not always done deliberately. Sometimes it is a result of a bad decision, action or behavior, and it can have long lasting results. Let me illustrate.
Your company is growing. You need to increase the staff from 20 to 22 people. To make things more difficult, two people quit, which means you now have to hire four people. You are still doing most of the hiring yourself, and you have little time to interview for the new positions because you are shorthanded. This is the nature of the beast at a growing company.