With the NBA’s free agency period starting this month, let’s remember the failed promise of last year’s Brooklyn Nets and Los Angeles Lakers.
Why? ’Cause business is like basketball: You can hire a superstar, or even a few of them, but if you fail to invest in the rest of your team – having spent the bulk of your personnel budget to get those big blockbuster trades – your franchise will fall apart.
A Team Can Work on Paper but Not on the Court
Last year’s Nets were one of the most stacked teams the NBA has ever seen. With Kevin Durant, Kyrie Irving, James Harden, Ben Simmons, and LaMarcus Aldridge, they had no shortage of talent and were the clear championship favorites heading into last season.
But the Nets got swept in the first round by the Boston Celtics, whose only superstar (a status debated among pundits) is Jayson Tatum. The Lakers, likewise, went all in on superstar Russell Westbrook, passing on much-needed shooting guards – like Buddy Hield – who would’ve been a more cost-effective and complementary fit alongside LeBron James and Anthony Davis.
With both teams now looking to make big roster changes, their mutual disaster seasons can serve as a warning for business leaders.
The Cost of Poor Hiring Decisions
Businesses, like basketball teams, have a limited number of roles to fill, and landing the wrong hire is one of the most expensive mistakes you can make. A bad hire can cost you 30% of the employee’s first-year salary, according to the U.S. Department of Labor. (Tony Hsieh estimated that bad hiring decisions resulted in losses over $100 million when he was the CEO of Zappos.)
The best fit isn’t always the most expensive one or the one with the most impressive qualifications, but if you lack time or preparation, it’s easy to fall into this trap. In a CareerBuilder survey, 43% of respondents admitted to making poor hiring decisions because they were pressed for time.
There’s no quick fix or easy answer for landing quality hires. It takes a holistic and comprehensive approach, from 360-degree reference checks and skill tests to brand-building strategies that attract quality hires. But the Nets’ and Lakers’ absence from the 2022 NBA Finals should be a cautionary tale: A lone superstar is different from a championship team.