How to avoid bad hiring decisions when it matters most, according to this Houston expert

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Despite the inevitability of bad hires, recruiters equipped with proper tools and training can identify red flags and take preventive measures. Photo by Tima Miroshnichenko from Pexels

Hiring the right people for the right roles is ideal and can make an organization reach new heights. The reality is every business has made a bad hire.

Finding the wrong fit for a team or organization is not uncommon, but it is important to know what it costs the organization, which can be detrimental to company finances and its workplace culture, especially small businesses and startups where the impact is magnified.

The U.S. Department of Labor reports a bad hire can cost up to 30 percent of the employee’s wage, which would be approximately $18,000 since the average American wage is $60,000. In addition, there are soft costs of managers and leadership time during the hiring and training process, which adds up quickly.

Bad hires explained

A bad hire can simply be someone who is not the best fit for the position or the company. The quality of work may not meet expectations; however, there are behaviors that can point to a bad hiring decision. New hires who were recruited due to specific knowledge or a skillset, but they do not deliver, have a negative attitude, or are disengaged, are all signs of a bad hire.

Even though hiring the best people for the job should be every recruiter’s goal, they are sometimes pressured to quickly fill the role. Once a new hire starts, it does not take long to find out if they are a bad hire. Recruitment is vital to a company’s success, so it is important to know how to identify a bad hire before they join the organization, the red flags, and the lasting impacts to the workplace culture.

Right turns, wrong fit

Business leaders most certainly think they are bringing in the right person for the job, but the wrong fit can significantly impact the organization.

Suffering morale and reduced teamwork: Incompetent employees force team members to cover their work, negatively impacting morale. If these issues persist, it signals to existing employees that suboptimal work is acceptable, which adds stress, distraction and reduced engagement.

Unmet expectations: When a new employee exaggerates their qualifications, they may struggle to meet expectations, resulting in slow or inadequate work product, which can be especially detrimental in a small business setting. This not only impacts the company financially but also demands managers’ time for oversight and performance issue resolution.

Weakened employer reputation: Startups and small businesses depend heavily on their hard-earned reputation and brand. Employees represent a company’s values, and when they fail to embody them, it can negatively influence sales, vendor relationships and recruitment efforts. Actions of employees, both in-person and online, significantly shape public perception.

Client attrition: Poor performance or unprofessional behavior can damage client relationships, leading to business losses. These client experiences may lead to lasting consequences for the company’s reputation, affecting potential clients and key partnerships, and its bottom line.

Recruiting and training challenges: The recruiting process usually spans four to six weeks, involving tasks such as drafting the job description, obtaining approvals, posting ads, resume screening, candidate communication, interviews and offer negotiations. After accepting an offer, new employees, regardless of experience, require time to familiarize themselves with the organization, its processes and job responsibilities. If a poor hiring decision is made, the recruitment process may persist, leading to extended periods of onboarding.

Preventing bad hires

Experienced recruiters can still make bad hires, but certain measures can help mitigate risks:

  • Fine-tune job descriptions. Clear and concise job descriptions aid in identifying suitable candidates and provide a better understanding of position expectations.
  • Take sufficient time. Resist the pressure to fill the role; prioritize finding the right candidate to avoid subsequent costs.
  • Standardize the interview process. Employ set questions for consistency and involve team members in behavioral and peer-to-peer interviews to assess cultural fit.
  • Check references. Verify candidates’ honesty, skills, attitude toward work, and work ethic through thorough reference checks.

Despite the inevitability of bad hires, recruiters equipped with proper tools and training can identify red flags and take preventive measures. This proactive approach ensures better preparation for attracting top talent and minimizes the impact of suboptimal hiring decisions on the company.

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Karen Leal is performance specialist with Houston-based Insperity, a provider of human resources offering a suite of scalable HR solutions available in the marketplace.

A new report indicates the Lone Star State lost 4,246 clean energy jobs — a 1.7 percent decline in the state's clean energy workforce. Getty Images

Texas sees decline in clean energy jobs — and more losses are expected due to coronavirus

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The dangerous duo of the global oil glut and the coronavirus-spawned economic shutdown already has whacked Houston's oil and gas sector. The crippling of the American economy has taken its toll on the region's clean energy industry as well.

In a report released April 15, a coalition of clean energy groups tallied the loss of 106,472 U.S. clean energy jobs in March. Texas accounted for 4,246 of the lost jobs, a 1.7 percent decline in the state's clean energy workforce. A metro-by-metro breakdown wasn't available.

The nationwide loss erased all of last year's gains in clean energy jobs in the renewable energy, energy efficiency, clean vehicles, energy storage and clean fuels segments, the report states.

While that's a troubling development, the report predicts more than 500,000 clean energy jobs could at least temporarily be wiped out in the coming months. That would represent about 15 percent of the country's clean energy workforce.

"The economic fallout from COVID-19 is historic in both size and speed," Phil Jordan, vice president and principal of BW Research Partnership, says in a release. "Activities across the entire range of clean energy activities, from manufacturing electric vehicles to installing solar panels, are being impacted. And the data pretty clearly indicate that this is just the beginning."

Based on an analysis of U.S. Department of Labor data, the report found those who lost jobs included electricians, HVAC and mechanical technicians, construction workers, solar power installers, wind power engineers and technicians, and manufacturing workers.

The report was produced by E2 (Environmental Entrepreneurs), the American Council on Renewable Energy (ACORE), E4TheFuture and BW Research Partnership.

Gregory Wetstone, CEO of ACORE, tells InnovationMap that the country's clean energy sector has been hobbled by supply chain disruptions, shelter-in-place orders and other pandemic-related interruptions.

"It is impossible to know the long-term trajectory of this pandemic, but it clearly threatens the trajectory of an industry that has led the nation in job creation for five consecutive years and is securing annual investment numbers in the range of $50 billion," Wetstone says. "With smart federal policies, we can continue that upward trajectory."

Ed Hirs, an energy fellow and economics lecturer at the University of Houston, says he thinks the hit being taken by the clean energy sector is a short-lived setback. He cites the long-term strength of the clean energy industry — strength demonstrated by recent high-profile investments in the sector.

In December, Private Equity News reported that investment manager BlackRock Inc. raised a record $1 billion for its latest renewable energy fund. A month later, Altus Power America Inc., a solar energy provider based in Connecticut, said private equity powerhouse Blackstone Group Inc. had pumped $850 million into the company.

Hirs says he expects post-coronavirus growth in the clean energy sector to be "pretty robust." As of April 2019, the Houston area was home to more than 100 wind-related companies and more than 30 solar-related companies, according to the Greater Austin Partnership.

At the end of 2019, Texas boasted 683 solar companies and 10,261 solar jobs, according to the Solar Energy Industries Association. Solar investment in the state exceeds $6 billion. The association says the Lone Star State "is poised to become a nationwide leader in solar energy … ."

As for wind, it essentially tied with coal as the top source of power for Texas homes and businesses in 2019. This year in Texas, wind is projected to grab the No. 1 spot from coal. The state generates about one-fourth of the country's wind power, and the wind industry employs more than 25,000 Texans.

Hirs anticipates solar and wind installations in Texas will continue to escalate, although some companies might put off capital expenditures for about two to four months. "I don't see the economics changing on them anytime soon," he says.

The groundswell of interest in solar and wind power will be a boon to Texas and the rest of the country, Hirs says. A 2019 poll by the Insider website found that Americans prefer solar and wind over all other power sources.

"I don't think the loss of employment and loss of progress on clean energy … projects right now is anything but a temporary challenge," he says.

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Rice, Houston Methodist award $90K for cancer research projects

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Rice University’s Synthesis X Center, in partnership with the Houston Methodist Neal Cancer Center, announced earlier this month the organizations would award $90,000 in seed grant funding to two projects that could help fight cancer. One would ease the pain of chemotherapy, while the other could change the way the progression of leukemia is tracked.

“We’re excited to be collaborating with the Neal Cancer Center to support collaborative, novel and interdisciplinary proposals to improve cancer care and outcomes,” Han Xiao, Rice professor of chemistry and the director of the SynthX Center, said in a news release. “Together, we can achieve translational excellence.”

The projects

Chemotherapy is one of the most effective cancer treatments, but it can be hard on the body. The human body doesn’t like being injected with radioactive material, especially the skin around the injection point, which can become extremely irritated. For patients in long-term treatment, the skin irritation can be more than just a bother; it can lead to infections that are dangerous to a compromised immune system.

Angel A Marti, a professor of chemistry at Rice University, and Biana Godin, an associate professor of nanoscience at Houston Methodist Research Institute, are experimenting with metal nanoclusters as a way to block radiation at the injection site. The nanocluster could be applied in a cream or a gel on the skin, serving as a type of shield against the harsh radioactive material.

Meanwhile, Yuan Ma, an assistant professor of chemistry at Rice, and Shu-Hsia Chen, a professor of immunology at Houston Methodist Research Institute, are working with m6A. Discovered in the 1970s, m6A is the most prevalent chemical modifier found in mRNA in mammals. It is prevalent in many cancers, including leukemia.

Ma and Chen are working on measuring the amount of m6A in leukemia to see if it can determine the most effective cancer treatments. The team is also experimenting with ways to shut off m6A to see if it makes current leukemia treatments more effective.

Progress from SynthX

SynthX was first launched in April 2024 to turn research from Rice and Houston Methodist into real-world cancer treatments. Within a year, the center had secured $1.5 million in grant money to work on crossing the blood-brain barrier in brain cancer treatments. These latest awards show that SynthX Center continues to bridge the worlds of research and clinical practice.

“This collaboration reflects a shared commitment to team science in cancer research,” Daniela Matei, the director of the Houston Methodist Neal Cancer Center, added in the release. “These are the types of translational and pioneering projects that lead to transformation in patient care.”'

The SynthX Center awarded $90,000 in seed grants to three teams in 2025 and $80,000 to three teams in 2024.

Tesla self-driving mode wasn't to blame in Houston-area crash, report suggests

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Federal safety investigators looking into a runaway Tesla that killed a grandmother in her home say the driver had pressed the accelerator to full speed, suggesting the vehicle's self-driving software was not to blame.

The driver had told police that he had the self-driving software turned on, but a report from the National Transportation Safety Board concluded that he had actually overridden that feature when he pushed hard on the pedal. Moments later the Tesla Model 3 raced down a residential street in Katy, Texas, at highway speeds, slammed into a brick home and killed a 76-year-old woman standing in the front room.

The crash last month drew national attention because Tesla CEO Elon Musk is seeking to reassure the public its self-driving feature is safe as he prepares to turn hundreds of thousands of Teslas already on the road into fully automatic vehicles and begin selling two-seated Cybercabs missing steering wheels and pedals.

The crash came two months after officials at a separate federal agency, the National Highway Traffic Safety Administration, announced it was elevating a 2024 investigation of the self-driving feature to new “engineering analysis” level, raising the possibility of a recall of 3.2 million Tesla vehicles.

That NHTSA probe was triggered by crashes where the self-driving feature failed to alert drivers to take control in fog and other poor visibility conditions.

The agency opened an investigation last year into 58 incidents in which Teslas reportedly violated traffic safety laws while using self-driving technology, leading to more than a dozen crashes and fires and nearly two dozen injuries.

Separate from the National Transportation Safety Board, NHTSA is also looking into the Tesla house crash in Texas, one of 46 “special crash” investigations of Tesla's self-driving or driver-assistance technology in the past decade, according to the agency’s records. In more than a dozen of those crashes, at least one person — a driver, passenger or pedestrian — was killed.

Tesla had originally called its driver assistance software Full Self-Driving, or FSD, but auto experts and regulators complained it was misleading because drivers must always keep their eyes on the road and be ready to take over at any time.

The company has since changed the name to Full Self-Driving (Supervised).

Video of the Katy, Texas, accident shows the Tesla traveling at more than 70 mph (112.65 kilometers per hour), jumping a curb then tearing across a lawn before crushing through a brick wall of a home. A woman standing feet away, Martha Avila, was found amid piles of crumbling plaster, split beams and bits of furniture and rushed to a hospital but died.

Sales of Tesla cars still haven't recovered fully from boycotts last year over Musk's political stands, but the stock is rising anyway as he has successfully shifted attention away from the sales figures. He says they matter less now that the company is on the cusp of major technological advances, such as turning Teslas into hands-free vehicles and having its Optimus robots take over for humans for tasks at home and work.

Tesla stock has risen 22% in the past year and is currently trading at 170 times expected annual earnings compared to 20 for the S&P 500.

For its second-quarter financial results, financial analysts surveyed by FactSet expect earnings per share will barely budge — 32 cents versus 33 cents a year earlier — continuing a sixth quarter streak of flat or falling profits.

London AI startup selects Houston for first U.S. office after $20M raise

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London-based AI firm Applied Computing has announced a $20 million Series A round and a new office in Houston.

The new Bayou City office is Applied Computing’s first in the United States and part of its North American expansion. The company is known for its Orbital AI platform, which is tailored for energy operations.

The funding round was led by Houston-based KBR Inc., with participation from San Francisco-based Databricks Ventures. KBR’s investment was first announced in March.

KBR and Applied Computing have also entered into a multi-year agreement to deliver exclusive AI products for the energy sector. KBR already has integrated Orbital into its INSITE 3.0 platform for energy projects, and is also using the product for ammonia production.

Applied Computing’s Orbital platform combines physics-grounded intelligence with models across chemical engineering, time-series forecasting and language, according to the company. The system analyzes sensor readings and can recognize a facility’s equipment constraints and operator activity. The platform can also allow technicians to run simulations of how a change to a facility could affect the rest of its operations.

According to TechCrunch, Applied Computing will use the $20 million to further explore projects and deployments with the energy sector, hire engineering and research positions, and continue to expand internationally, potentially into the Middle East.

The company is also working on deals with a major U.S. stream operator, TechCrunch reports. And Applied Computing shared on LinkedIn that it plans to announce its first partnership with a major European oil company in the coming weeks.

“Yesterday we showed Orbital live in deployments at our demo day at the Energy Institute in London,” Callum Adamson, CEO and co-founder of Applied Computing, posted on LinkedIn on July 16. “Today, we're announcing the capital to scale it globally as well as the launch of our new offices in Houston and Bangalore. In the weeks following, there will be more announcements on our progress, partnerships and deployments.”

The company opened its Bangalore offices in December.

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