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The REAL Cost of a 'Bad Hire'

June 22, 2015



Hiring the wrong person for the job will undoubtedly cost the company money with hiring costs, compensation, severance but what are the other costs to the company for this bad hire:

  • Time – Time spent looking for the wrong employee and then re-doing the whole process, spending time over any issues that arise, companies may have to provide extra training to the employee if they weren’t as qualified as they had said.

  • Damage to reputation – Legal issues could arise from a bad hire, bad reviews on social media from staff and customers

  • Loss of morale in staff which leads to loss of productivity – Current employee’s may have to increase their workload until the position is filled by the correct candidate, this will also impact how ‘good’ employee’s view their employer

  • Loss of business – Missed sales opportunities, disgruntled clients

These are just a few of the many costs to a company of a bad hire. A ‘bad hire’ can never be completely eliminated but there are things that can be done to reduce the risk of it.


Pre-employment screening can make sure that who is being hired is exactly who they say they are, are qualified to fill the job role and have the experience necessary. 

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