News and Insights / Employer Insights

The Cost of a Bad Hire

Two workers having a very serious conversation

Impacts and Ways to Avoid One


Hiring someone can be a daunting task. You’re probably looking for a particular set of skills and experience that meshes well with you and other team members. You’re seeking aptitude, a positive attitude, and excellent communication skills. (And let’s not forget that their compensation preferences should fit your budget.)

Many candidates may not initially be a magical fit, but with proper onboarding and training, they may become Employee of the Year every year. However, some people may initially seem too good to be true and end up being a thorn in the sides of everyone in your department. Making a wrong hire can hurt team morale and productivity. It also likely leads to additional costs for recruiting, onboarding, and training a replacement. Also, a disgruntled employee miffed over being terminated may write a bad review on a job hiring site, reducing your company’s ratings. This could impede your efforts to replace them and may impact your brand. Fortunately, there are ways to minimize your chances of being faced with a bad hire situation.

The cost of a bad hire can be equivalent to up to 30% of the employee's first-year earnings.

U.S. Department of Labor

Use a staffing company for your next hire.

A staffing firm can help minimize cost, time, and frustration when seeking employees and contractors to fill open positions. A staffing company can be a valuable resource to handle the recruiting, background screening, and onboarding for you quickly and efficiently. With resources and access to vast talent networks, they can provide you with fully vetted professionals, minimizing your risk of acquiring a bad hire. Most staffing companies guarantee their placement process so if a client determines a candidate is not the best fit for the position, a backfill is provided at no additional cost. Additionally, they have expertise in their local markets and industries to fully understand your hiring needs.

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