How does hiring the right person effect the bottom line?

Answer 1

Because the bottom line is based on revenues vs. expenses, you must consider how hiring the right person saves expenses and increases revenue. Hiring the right person certainly lowers the turnover rate in that specific position. This saves on additional recruiting costs whether recruiting internally or externally. The higher up the position is in the organization, the more costly a mishire, i.e. a mishire in a management position will be more costly than mishiring in an entry-level position. Hiring the right person can also result in increased revenue, i.e. if you hire someone who is innovative and creative, they may improve a company's processes and procedures, streamline automation, customer service, etc. which can ultimately lead in increased revenues.