- There are usually HR policies around firing people that takes awhile and a lot of paperwork.
- You open yourself up to lawsuits whether they are successful or not, it still a hassle and has costs.
- you increase the amount you have to pay to your states unemployment insurance fund.
- It puts a chilling effect on other employees. They think they can easily be fired to.
- if the employee is really bad, they do “negative work” and put more work on the other employees who have to work around them or redo their work.
Very rarely will one employee that you don’t hire make or break an established company.
Everything I know about management, hiring, firing and organizational theory comes from the Manager Tools/Career Tools Podcasts.
As far as hiring, this is my go to guidance.
https://www.manager-tools.com/2007/04/effective-hiring-set-t...
But, just because a company gets big, doesn’t mean that you can take hiring less seriously. You still have to be sure that you hire the right people. A false positive - hiring someone that can’t do the job - is worse than a false negative - not hiring someone who would be a good fit.