The hiring process can be tricky. This is because people are the most important part of any organization. Moreover, most consumers are willing to pay more for a great experience solely based on the people involved in a given organization. Knowing that most consumers won’t settle for anything short of a clearly superior product or service, hiring the right person is critical for the success of your organization.

It is crucial to understand the costs associated with a bad hire, as it can negatively affect the organization as a whole.  In fact, the Society of Human Resource Managers found that there are five areas that are specifically impacted:

  • 41% loss of productivity of the department
  • 40% lost time to recruit and train the replacement
  • 37% lost cost to recruit and train the replacement
  • 36% employee morale negatively affected
  • 22% negative impact on client engagement


Even high-churn positions can see and impact from a bad hire. Looking at the general causes of bad hires gives you the ability to address each one with a remedy that fits.  So, what causes a bad hire?

  • Need to fill the job quickly (unrealistic expectations)
  • Insufficient talent pool (many inexperienced people applying)
  • Incorrect evaluation process (didn’t check references, previous jobs, went on gut feeling, etc.)
  • Just made a mistake (hey we are all human)

The impact of these problem areas flow throughout the organization and can influence all business operations. Additionally, it can even affect areas of the business where the employee was not directly hired.

The consequences of hiring the wrong person are not always understood. However, it has a powerful sway on the bottom line.  Furthermore, according to The Society of Human Resources Management and a Harris Interactive poll, the cost of a bad hire can be up to $50,000. Avoiding a bad hire brings more money to the table for retaining talent, growing the organization, and creating a better environment.

Still have questions about recruiting efficient employees? Feel free to contact us.