Ray Dalio (@RayDalio) “The most important thing you can do is understand that hiring is a high risk gam” — TopicDigg

The most important thing you can do is understand that hiring is a high risk gamble that needs to be approached deliberately. A lot of time, effort, and resources go into hiring and developing new employees before it’s clear whether or not they are good fits. Months or even years and countless dollars can be wasted in training and retraining. (For example, every person you hire requires you to hire others to support them. I call this the "1.6 effect.") Some of those costs are intangible, including loss of morale and a gradual diminishment of standards as people who aren’t excellent in their roles bump into each other; other costs from bad outcomes can be measured all too easily in dollars and cents. So whenever you think you are ready to make someone an offer, think one last time about the important things that might go wrong and what else you can do to better assess those risks and raise your probability of being right. #principleoftheday#