An Entrepreneur’s Most Expensive Mistake–And How To Avoid It

There is no more expensive mistake for an entrepreneur than a hiring mistake.

For every role at my independent wealth management firm LexION Capital, a personality test is an early part of the interview process. There are many other factors to consider, but personality data adds important information to the wide variety of metrics we consider when interviewing a candidate. Entrepreneurs can be well-served by adding personality tests to their interview process. Especially for young, growing companies, every hire must be the right addition to your team.

  • Personality tests add insight you can’t get in an interview.

Anyone can be charming and well-spoken in an interview. That’s not necessarily any indicator that they will perform well in a given role. Personality data helps enrich your understanding of a potential hire’s natural strengths and weaknesses.

  • Personality data is objective and helps counteract personal bias.

We are all human, and no matter how much we try, personal bias can skew our initial impressions of people. Personality tests are a rich source of data that help you stay more clear and objective in your hiring decisions.

  • Personality data helps you understand whether someone is naturally suited to a role.

As an entrepreneur your job is to place people in roles where they will be successful, and a good fit for your growing team. You are the one who understands best what your business needs. Candidates will always present themselves in the best light for the job (especially true when hiring enthusiastic recent grads, who are excited to learn and just starting to figure out their strengths in the working world). So it’s up to you as business leader to hire people in roles that align with their natural strengths, and personality data can provide a more complete picture.

For more ideas on entrepreneurship, check out my regular column on Inc.com!