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Ethical considerations in hiring

I’m currently at a small startup with a very high turnover rate. I actually got my role without going through an interview 🚩🚩🚩. Lately, I’ve been trying to put myself in HR’s shoes.

Interestingly, the HR who hired me left shortly after I joined, and the position remained vacant until a new HR came in recently.

Some questions I’ve been thinking about:

- From an HR or leadership perspective, is it ethical to continue aggressive hiring if the company’s internal culture or financial health is shaky?

- As a candidate, how should one interpret situations where hiring continues despite organizational issues that may be beyond my knowledge?


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S’s Answer

This is an important question, and the truth is that hiring ethics are often not clear-cut. They don't simply fall into "right" or "wrong" categories.

From an HR or leadership viewpoint, hiring during uncertain times isn't automatically wrong. It depends on the reasons, openness, and understanding of the risks involved. Hiring is reasonable when:

- The company believes new talent can help improve the situation.
- There is funding, but the company needs help with operations.
- Staff changes are happening in specific areas or due to leadership shifts.
- The position is vital for the company's survival or restructuring.

However, it becomes questionable when:

- Leaders know about upcoming layoffs or financial troubles and hide it.
- Hiring is used to cover up bigger problems without plans to fix them.
- New hires are given unrealistic expectations.

Most companies are somewhere in the middle.

From a candidate’s view, it's hard to know everything about a company's situation, and it's not their job to uncover every risk. But there are signs to watch for:

- High staff turnover with unclear reasons.
- Frequent talk of reorganization without solid plans.
- Jobs being reopened often.
- Unclear information about funding or stable leadership.

These signs don't mean you shouldn't join, but they should lead you to ask more questions.

The ethical reality is that HR and leaders often don't have all the information either. Financial conditions and leadership can change quickly, and what seems wrong later may not have been clear at the time.

Ethics in hiring is about:

- Acting honestly.
- Not misleading candidates.
- Treating candidates as capable of making informed choices.

The main point is that hiring during tough times isn't wrong by itself, but hiding the truth is. Candidates should ask good questions, and companies should be honest about what they can offer.

No hiring process is without risk for either side.
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obinna’s Answer

Is it ethical to keep hiring when things are shaky?
It depends. It’s ethical only if leadership is honest about the risks and working to fix the problems. It becomes unethical when companies hire aggressively while hiding toxic culture, instability, or financial trouble.

How should candidates interpret this?
Continuous hiring with high turnover is a red flag, not always a deal-breaker. It often signals internal issues candidates can’t see yet. The right move is to ask careful questions, observe patterns, and protect your own interests.

Bottom line:
Hiring during instability isn’t wrong by default—but lack of transparency is.
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Marty’s Answer

It's a company's job to hire staff according to workforce needs, not to interpret ethics that may or may not be applicable. If you believe that the company is failing or not ethical, it's up to you to make a change, or not, as you feel appropriate. Sorry - but it's one of those life lessons.
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Joseph’s Answer

The short answer to your query is "You don't know." I've had 17 jobs lasting 6 months to 6 years in my careeer including 7 layoffs lasting 3 to 11 months).

If you are working at a startup, you and your colleagues are gambling that the venture capital invested will allow the company to either go public and the shares sold on the stock market, or the company is sold to a larger competitor.

If you are working at a company that has already gone public, you and your colleagues are gambling that the quarterly fiscal results show investors that your company is still worth betting on, Otherwise, rumors of reorganizations and layoffs become a reality.

My advice is to remembeer that there is only one Golden Rule: "Those that have the gold make the rules."
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