If you review any profit and loss statement from any company, it apparently gives you the breakdown of income and expense.To make more profit of the company, it needs to know how to make more income with the least expense as much as possible.

We know that the right or wrong people we hire for the company should be related with the profit or loss of the company. However, one cannot track down precisely who contribute the income, expense and therefore profit or loss of the company; as the only item related with people directly is “salary expense”.“Human Resources Asset” is not even listed as the asset item of the company from the balance sheet statement. “Loss” due to hiring the wrong people cannot be tracked it down for the loss of income and the incurred expenses.Such type of “loss” cannot be simply written off or adjusted according to any accounting principle as we do not have the accurate tools in booking the right people in our statement in the first place. The estimate of loss is about 2 months pay for a entry level, a year's salary for a professional person and several years salary for senior executive position. The actual amount of loss varies with different type of company.

It may well say that  the source of such loss is due to the fact that we have no exact technologies and methodologies to predict the performance of new recruits or unable to prevent destructive people from working in your company.  Probably you may have experienced that kind of loss or have heard a lot of stories regarding this.

Is there anything missing when we select our people to work for our company in the first place that cannot insure us against any loss but stable profit? The apparent missing element is that we don’t really know the person sitting in traditional interviews but without enough data and information to make any evaluation and prediction.

If you do not have any proven means of recruitment selection and tools to protect the company from potential loss in hiring errors, it is time to review to make sure  you have necessary and workable personnel assessment and evaluation tools to make your "bottom line" growing.