What Is the Real Cost of a Bad Hire and How Do I Avoid It

Hiring the wrong person is expensive. And not just in salary.

Most businesses only count the direct costs. But the real damage from a bad hire goes far beyond the payslip or recruitment fee.

What a Bad Hire Really Costs

1. Lost productivity
A poor performer slows everyone down. Tasks get redone, projects get delayed, and team output takes a hit.

2. Management time
You spend hours coaching, correcting, and following up. That is time lost from more strategic work.

3. Team morale
Bad hires can frustrate high performers. If someone is not pulling their weight, it affects everyone.

4. Reputational risk
If the person deals with clients or customers, the damage can extend beyond your team.

5. Re-hiring costs
You will likely need to go through the whole process again. That means more advertising, more interviews, and more time lost.

How to Avoid It

- Be honest about what the role is and who will succeed in it
- Use structured interviews with clear scorecards
- Partner with a recruiter who challenges your brief, not just repeats it
- Always check references properly, even for referrals

Final Word

The true cost of a bad hire often exceeds two or three times their salary. Getting it right the first time is always the cheaper, faster, and smarter move.

At Harper Finley, we focus on long-term fit, not short-term placement.