While the hiring process can be difficult to navigate, especially if you’re new to it, the truth is that it’s vitally important.

According to the U.S. Department of Labor, a bad hiring decision can cost as much as 30 percent of an employee’s annual salary, so it’s worth getting it right the first time.

Additionally, building a successful company depends a lot on your employees. After all, you employees are a representation of your organization, and in many ways, your ability to scale hinges directly on their productivity. Hiring the right people for the right roles will help your company to grow and is a crucial part of your success.

When it comes to hiring, and ensuring that you get the best people for the job, there are a few things that you’ll want to do as well as some things that you’ll want to avoid doing. With this in mind let’s look at a few common mistakes that companies often make when hiring.

Hiring Simply Because You Can

Taking on a new employee simply because you can isn’t a good reason to hire. In fact, it’s a terrible reason, and one of the quickest ways to lose money. Before bringing on a new employee, you should ensure that you not only have enough work for them to tackle, but also make sure that doing so will improve your bottom line. The cost of bringing on a new employee can be significant in terms of not only wages but also taxes, insurance, benefits, and training, and you’ll want to make sure that bringing on a new employee will lead to higher profits.

Hiring a Friend

It may sound harsh, but you should be very careful about hiring friends or family. Not only can good friendships become strained once you introduce workplace dynamics, but there may come a point when you have to let your friend go, potentially putting you in a very uncomfortable position. There’s also a risk of personal bias entering the equation. Always ensure that you fairly assess each of your candidates on their ability to fill the role, and keep personal feelings out of it.

Hiring the Wrong Person for Job

When it comes to hiring, it’s important that you hire the right person for the job. Don’t make the mistake of settling for an unqualified applicant. Instead, look to generate interest and give yourself a bigger pool of applicants to choose from. Get the word out about your vacancy by posting on job sites like Monster, Indeed, and Simply Hired, to help fill the position as quickly as possible.

Neglecting to Create a Job Description

Another common mistake that’s often made when hiring, is neglecting to create a detailed and descriptive job description. Don’t succumb to the temptation to feel that you should “just bring someone on to help lighten the load.” Hiring someone without a clear job description is a good way to set your new employee up for failure. Without a clear job description, you’ll have a hard time knowing whether someone’s a good match or not. Additionally, your new hire also won’t know what’s expected of them and will have a hard time staying engaged and motivated. Equally troubling, you won’t be able to give them performance reviews or track their progress because without a clear job description, you won’t have anything to go off of. Eventually, your employee will begin to flounder in their role, and could end up looking for work elsewhere. Don’t waste time with vague job descriptions; instead, make sure you outline the position’s job duties before you begin your job search.

Failing to Check References

While you may feel confident that the person that you’ve interviewed will be perfect for the position, it’s important that you verify their previous positions and qualifications that they have listed on their resume before you make your decision. Since 53 percent of all job applications contain inaccurate information, this step is one that you won’t want to neglect.

Hiring is the easy part, finding the right employee is a lot more challenging. By avoiding these five mistakes, you’ll be able to help increase your chances of ending up with a qualified applicant that’s perfect for the role and increase your chances of success.