Shalom Lamm on the Cost of a Bad Hire: Hard Lessons from the Wrong Team Choices
In the fast-paced world of entrepreneurship, growth is often measured by how quickly you can scale—more customers, more revenue, more staff. But as Shalom Lamm, a veteran entrepreneur with decades of leadership experience, has learned the hard way, hiring the wrong people can cost far more than just a few bad weeks at the office.
“It’s easy to get caught up in the momentum,” Lamm says. “You need help, your business is expanding, and the instinct is to fill seats fast. But if you don’t slow down and hire intentionally, the damage from one bad fit can set you back months—or even years.”
In this blog post, we explore Shalom Lamm’s experiences with poor hiring decisions, what he learned from them, and how entrepreneurs can avoid falling into the same traps.
The Hidden Danger of Hiring Fast and Wrong
When you’re wearing a dozen hats as a founder, adding new team members seems like the logical way to lighten your load. But as Lamm explains, hiring without a clear strategy—or out of desperation—rarely ends well.
In one of his earlier ventures, Lamm expanded his team quickly after landing a major client contract. “We were overwhelmed with work and needed people fast,” he recalls. “I interviewed three candidates in one day and made offers on the spot. I told myself I’d deal with the fit later.”
That decision backfired within weeks. One new hire clashed with existing team members, another routinely missed deadlines, and a third simply didn’t have the technical skills she claimed on her resume.
“The culture took a nosedive. Productivity dropped. And worst of all, I lost the confidence of some of my best employees,” Lamm admits. “I thought I was solving a problem, but I created a bigger one.”
The Real Costs of a Bad Hire
A bad hire doesn’t just hurt morale—it hits every corner of the business. Shalom Lamm outlines several consequences he’s personally experienced:
- Wasted salary and benefits: Paying someone who’s underperforming is money down the drain.
- Time lost on onboarding and supervision: Managers spend valuable hours trying to fix or work around bad hires.
- Impact on team morale: “Good people will leave if they’re constantly cleaning up someone else’s mess,” Lamm warns.
- Client trust and reputation: A wrong hire in a client-facing role can erode years of goodwill in a matter of days.
Studies support this, showing that a single poor hire can cost a business up to 30% of that employee’s annual salary, not including indirect fallout.
Shalom Lamm’s Lessons from the Hiring Trenches
After navigating more than one hiring misstep, Shalom Lamm has refined his approach. Here are some key lessons he now shares with fellow entrepreneurs:
1. Culture Fit Isn’t Optional
“It doesn’t matter how talented someone is—if they don’t align with your company’s values, they won’t last,” Lamm says. He now places just as much weight on attitude and communication style as he does on technical skills.
2. Slow Down the Process
Lamm recommends multi-stage interviews, involving team members from different departments. “It’s better to take longer to hire the right person than to rush and regret it.”
3. Always Check References
One of Lamm’s early mistakes was trusting resumes at face value. Now, he insists on speaking with at least two former managers for every candidate. “People can say anything in an interview. Their history tells the real story.”
4. Don’t Delay Letting Someone Go
It’s a painful truth, but sometimes a quick termination is better than dragging out a bad situation. “You’re not doing them or your company any favors by avoiding the tough decision,” Lamm notes. “Cut losses early.”
Hiring Is a Skill—Not a Task
Lamm believes that many entrepreneurs treat hiring like a to-do list item, rather than the long-term investment it is. “You’d never rush into a funding deal or product launch without due diligence. Hiring deserves the same level of care.”
He also emphasizes the importance of creating a structured onboarding process that sets new hires up for success. “Even the right person can fail if they’re thrown into chaos,” he adds.
Final Thoughts
Entrepreneurship is a rollercoaster, and building the right team is one of its most crucial—and challenging—parts. As Shalom Lamm has discovered through trial and error, the wrong hire can drain your resources, hurt your culture, and stall your growth. But the right one? They can transform your business.
So the next time you’re tempted to hire fast just to ease the pressure, remember Lamm’s story. Take your time. Ask the tough questions. Look beyond the resume.
Because when it comes to building a winning team, who you hire is everything.