New blog

From the Desk of Brad Smart: Hiring Mistakes: The Silent Killer of Business Strategy

Written by Brad Smart | Jul 3, 2025 12:02:03 AM

I've spent five decades helping companies avoid costly hiring mistakes and let me tell you – bad hires are like termites. You don't always see the damage right away, but given time, they’ll quietly destroy everything you've worked to build. Strategy included.

Topgrading’s VP, Andy Williams, led a powerful thought leadership session unpacking this exact topic. The title says it all: Hiring Mistakes: The Silent Killer of Business Strategy. And if you care about growth, performance, or just not wasting your budget, this is a recording worth watching.

Andy brought clarity to something I’ve witnessed in every industry, every decade: it’s not that leaders lack vision – it’s that they too often trust that vision to the wrong people.

When Execution Fails, Look at the Hires

Andy doesn’t sugar-coat it. You can have the world’s best business plan – well-funded, carefully structured, backed by top advisors – and it will fall flat if you staff it with the wrong people. As he put it, and I quite agree:

“A hole in the org chart is serious but usually better than an a-hole in the seat.”

In other words, a vacant role is frustrating, and the absence of an A Player in a key role can be devastating. If you're operating without proper financial oversight while searching for a CFO, the fines could break you. But a hiring mistake? That is usually more devastating. Hiring mistakes erode culture, derail progress, and damage your credibility as a leader.

But you know that. What you might have experienced is a hiring mistake that has you fooled – like the new VP of IT who convinces you (a non-expert) to misspend a fortune … and you don’t realize it until a year later, when the money’s gone and the IT department is a mess.

A People Problem Disguised as Strategy Failure

It’s convenient to blame “market conditions” or “unforeseen obstacles.” But if your business strategy consistently struggles to take hold, there’s a good chance the issue is your hiring process.

Andy highlighted a few of the most common culprits:

  • Vague expectations: Hiring without clarity on what success looks like
  • Settling: Hiring the “best of the worst” because you're desperate
  • Skipping accountability: Letting mediocre performers drift by without course correction
  • Unwanted turnover: Losing tired A Players

The cost of a hiring mistake isn’t just salary – it’s lost opportunity, wasted management time, and compounding dysfunction.

➡️ Not convinced? Try our Cost of a Hiring Mistake Calculator and see for yourself. This popular tool will blow your mind. Almost everyone underestimates the financial hit – and even more so, the time drain hiring mistakes cause for your team.

Track What Matters: Three KPIs to Gauge Your Hiring Health

Andy introduced important hiring metrics every leader should track, including:

  1. Hiring Success Rate – A year after people are hired, what percentage have turned out to be A Players?
  2. Internal Promotions – One year after promotions, what percentage turn out to be A Players?
  3. Undesirable Turnover – The percentage of your A Players that have quit.

This isn’t fluff. If you track sales, revenue, and profit – but ignore these – you’re only measuring half your business.

Resumes Are the Wrong Way to Source Candidates

Andy said it bluntly: resumes are marketing brochures. They’re designed to impress, not confess. And yet, most companies still begin hiring here. You hand recruiters a job description, but too often these are vague and don’t include measurable accountabilities.

Topgrading starts with a Job Scorecard that includes exactly what the person must accomplish.

Source Like You Mean It

It’s not just who you hire, it’s where you find them. If your sourcing strategy is posting a job on Indeed and praying for greatness, you’re already behind.

Andy shared how great companies, like TD Industries, achieve up to 40% of their hires through referrals. That’s not luck. That’s a culture – and a system – that attracts A Players. Are you doing the same?

Other high-impact sources:

  • Former high performers (re-recruit them!)
  • Passive candidates – A Players who aren’t looking for a job
  • Strategic internal transfers – too often companies overlook people who would become A Players in a different role – through promotion or lateral moves

The Most Revealing Interview: The Topgrading Interview

Most hiring interviews are haphazard, incomplete, gamed by candidates, and obviously designed to avoid revealing the weaker points that would cause them to fail. It’s “obvious” because you’ve had too many hiring mistakes.

The Topgrading Interview is a structured, chronological, evidence-based interview. We look at a candidate’s full career arc. We ask for reference calls with the most important people for you to talk with – managers they reported to. Candidates – not you – arrange those calls, so there’s no dodging accountability. And we teach you how to spot patterns that matter.

Topgrading is the ultimate insurance policy for good hires.

This isn’t about adding process for process’ sake. It’s about protecting your business – your strategy, your team, your time. Every great outcome starts with a great hire. And every regrettable one? You guessed it.

As Andy reminded us: Strategy doesn’t fail in the boardroom. It fails in the trenches, when the wrong people are hired.

🎥 If you missed the session, do yourself (and your P&L) a favor:
👉 Watch the full presentation now

Because your strategy deserves A Players.

We regularly host thought leadership presentations just like this one.
If you’d like to stay up to date on upcoming sessions – and get access to our latest hiring insights and marketing updates – click here to join our email list.

Topgrading can help you hire honest, high performers. Contact us.  

Dr. Brad Smart is Founder and CEO of Topgrading, Inc. Topgrading is dedicated to helping companies of all sizes maximize the hiring of high performers. Topgrading assesses candidates for senior positions (where the costs of hiring mistakes are high) and trains all managers to create teams of almost all high performers. Brad has seven published books on hiring; the most recent three (the first, second, and third editions of Topgrading) were all best sellers.

To learn more, download our free eGuide.

Improve your hiring success with Topgrading. Our proven hiring process will transform your selection methodology so that you get better hiring results across all industries, including hiring HR professionals.  Our  leadership and candidate assessment  tools will help you assess, hire, retain, and grow outstanding team members. Contact us to learn more!