The Cost of a Bad Hire: 10% of recruits regarding as a ‘poor hiring decision’

One in 10 new recruits are regarded as a ‘poor hiring decision’, with 70% of HR Directors admitting that they have hired someone who did not meet expectations.

Companies are turning their attention more to growth and profitability, so the consequences of a bad hire can be far more costly than expected. Over half (52%) of HR Directors stated that loss of productivity is the biggest problem associated with making the wrong recruitment decision. Around a third (30%) stated that a poor hire reduces staff moral whilst one in five (17%) stated that it resulted in significant financial costs. These can include:

  • Employee’s salary
  • Lost performance
  • Education and training costs to raise performance levels
  • Impacted productivity of the employee, colleagues and management
  • The potential loss of revenue
  • The ultimate cost to re-recruit for the role

UK hiring managers were asked:

“Which one of the following, in your opinion, is the single greatest impact of a bad hiring decision?”

Their responses:

  • Lost Productivity                     52%
  • Lower Staff Morale                 30%
  • Monetary Costs                       17%

There is huge competition for top talent and the job market is changing rapidly – therefore, it is essential that every employee demonstrates measurable results towards a company’s growth and strategic goals.

In order to minimise the risk of a bad hire, employers need to continuously evolve their recruiting processes, ensuring they have the right people and practices in place to identify and secure the most sought after candidates. Businesses should also ensure they work closely with the HR department and a specialised recruiter to establish a robust recruitment strategy.


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