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Episode 16: The Real Cost of a Poor Hire Ft. Dave Fox

March 7, 2023

Episode 16: The Real Cost of a Poor Hire Ft. Dave Fox

“I think most business owners in the beginning, just do a little bit of everything, right? Jack of all trades. You get to a point where it’s the opportunity cost.

I can continue to do my own invoicing and continue to do the things that I’m doing but I’m missing out on opportunity costs to be working on the business, out making the sales or networking connections, and things like that. So, I think that all entrepreneurs have that similar journey where you get to a point where you’re like, wait a minute, this doesn’t make sense for me to keep doing it.

And then you start bringing in experts in that role.”

Andrea Jenson

Welcome to a brand new episode of the Cash Flow CFO Podcast. Joining me today is Dave Fox, the founder, and CEO of Focus Global Talent Solutions, who serves the Fortune 500 market by offering specialized IT talent in data science, cloud computing, artificial intelligence, and digital marketing. In addition, Dave is a certified NFT specialist and a blockchain enthusiast.

We’ll discuss various topics, including the most essential lessons Dave had learned over the past five years and some of the issues he was dealing with when he decided to hire a part-time CFO. Hiring a fractional CFO has been an effective way for many businesses to get a senior executive’s knowledge and direction while navigating challenging situations. A fractional CFO might take on duties like creating the company’s financial planning, managing cash flow, raising money, and producing financial results, among others, because this specialist will oversee the organization’s economic well-being.

In this episode, we’ll also talk about how a fractional CFO benefited Dave’s firm and how crucial funding is as the organization enters the muddy middle (2 to 5 million range), and much more!

Join us to learn the whole story!

“As your team grows, the dynamic, the culture, everything is constantly shifting and evolving, right? And so, as the visionary, the leader of the company, you’re really constantly looking at,

“Am I sharing the vision in a way that everybody’s getting it and everybody’s rowing the boat in the right direction?”

And there’s not anyone as you alluded to, there’s not any one player that’s not holding their end of what needs to get done. And I think most business owners don’t realize how that truly affects their bottom line.”

Andrea Jenson

The Real Cost of a Poor Hire

What does a poor hire cost? How much money and revenue might you lose if you recruit the wrong individual, and why is it crucial to make intelligent hiring decisions? Dave thinks a poor hire costs a business 1.5 times that employee’s annual wage since you have to invest time in educating and developing the employee, and all costs are attached to the individual. Bad hiring decisions can lead to lost productivity and costs associated with finding, hiring, and training replacements. You may not have realized how much money a poor hiring decision could cost. Poor recruits could be inefficient and lazy, slowing your progress toward your objectives. There may be deadlines for your projects, but if everyone at your company cooperates, you can avoid missing them and dealing with disgruntled clients.

“They say a bad hire costs a company like one and a half times that person’s annual salary because you spend time training those people, you invest time into those people. Obviously, there are all the costs associated with the individual but then you don’t think about like what that lack of productivity does, how it can bring down morale.”