The cost of a bad hire (by Patrick Schober)

Depending on the position, a bad hire could set you back anywhere from $25,000 to $300,000. 

That’s according to researchers at the National Business Research Institute (NBRI). They’ve created an infographic to explain their findings for the lowest and highest paying jobs.   Based on their research, 66% of employers said they experienced negatives effects of bad hires in 2012.   

Of these employers, 37% said the bad hire negatively affected employee morale. Another 18% said the bad hire negatively impacted client relationships. And 10% said the bad hire caused a decrease in sales. Cost per position  

  • Researchers examined five main factors to help them estimate the cost of a bad hire:

  • loss in productivity – the annual salary of the employee

  • training costs – 25% of the annual salary of the employee

  • HR costs – calculated using the average HR Generalist’s salary

  • interviewing costs – calculated using the average HR Generalist’s salary, and

  • employment ads for a new hire – anywhere from $100 to $1,600.

  When these factors are combined, companies take a huge hit to their wallets. Read on...



Back