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Staff Overhaul

Should you use the tight job market to replace mediocre employees?

By Chris Penttila

Opinions expressed by Entrepreneur contributors are their own.

Last year, Matt DeLine, founder and CEO of San Diego HotelReservations Inc., was hiring almost everyone who applied. Thescramble to fill jobs was insane: "There wasn't time evento do reference checks," he says. "It was a frustratingtime."

He wasn't alone: A Challenger, Gray & Christmas surveylast year found that three out of five small-business owners werehiring virtually anyone with a pulse-including underqualifiedworkers who affected the bottom line with poor customer service anddecreasing product quality. "[Employers] had to get theirorders out, so they hired people who weren't as productive andcouldn't do the job as well," says John Challenger, CEO ofChallenger, Gray & Christmas Inc., an international outsourcingand research firm in Chicago.

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