The Hidden Cost of Bad Hires (And How to Avoid Them)

Most companies track "Cost per Hire." It's easy to measure: Advertising spend + Recruiter fees / Number of hires. But this metric is misleading. It encourages cheap hiring, not smart hiring.

The $240,000 Mistake

The real killer is the Cost of a Bad Hire. Let's look at the numbers for a mid-level manager with a $100,000 salary who leaves after 6 months due to poor performance:

The Breakdown

• Salary Paid: $50,000 (wasted)
• Training Costs: $10,000
• Recruiting Fees: $20,000
• Lost Productivity: $40,000 (while the role was vacant + ramp-up time)
• Team Disruption: $20,000 (impact on morale and other projects)

Total Loss: $140,000+

And that's a conservative estimate. For sales roles or leadership positions, the cost can easily exceed 3x the annual salary.

The Solution: Data-Driven Hiring

You can't fix this with better interview questions alone. You need data. You need a system that objectively assesses:

• Technical Fit: Can they do the work?
• Cultural Add: Do they share our values?
• Longevity: Are they likely to stay?

Calculate Your Savings

We built a free ROI calculator to help you quantify exactly how much money your current hiring process is leaking. It takes into account your hiring volume, turnover rate, and average salary.

Try the ROI Calculator Now

Conclusion

Investing in better hiring technology isn't an expense; it's an insurance policy against the single most expensive mistake a company can make.