I am a business owner, and so I like to reduce risk in my business. I am conservative in many business decisions as like to reduce risk. However, I will spend money and energy on some things. One of these is to reduce recruiting risk. Another in our service business is developing a top notch recruiting process.
If I had a factory, I would spend to get top quality parts for important functions. The risk not to is too high.
Interestingly, though, parts do not go on social media and complain. Parts do not learn your whole system and go elsewhere. People you hire do.
Parts do not steal your IP or take bribes from suppliers. People can bring you lots of value, but they also can bring you lots or risk if you are not careful.
Recruiting Risk is a Real Risk
Today, let us think about risk. I have had hiring managers tell me they can sniff out the liars no problem, We can also spot quite a few in the interview process as they are not smart enough to cover their tracks as they tell wild stories, However, if you failed to filter such people out, they likely would not hurt you too much. They are not good enough at lying and will get caught faster. Further, they are probably not sharp enough to steal a ton from you. See also China Supply Chain Risk Oh My.
What about the people who cannot be found out in the interview, though you ask deep questions for as much as 2 hours? These people are the real risk.
The GM candidate who flawlessly told me about his last 6 years at the head of a strong company. He further talked about his dreams for next year at this company. In fact, the company let him go after just three months. How dangerous is it to hire him? How much do you need to do to make sure you do not hire this high risk individual?