What is the Cost of a Bad Hire?

So what is the cost of a bad hire? Is it just a matter of losing time or is it a matter of losing money as well?

Let’s talk cold, hard facts. Think a bad hire is just a resume misfire? Think again! According to Business.com, they can cost up to 30% of their first-year salary, and that’s just the tip of the iceberg. ❄️

Breezy HR lays it out. Their formula factors in salary, recruiting costs, and time to fill the position. Let’s say you recruit a “rockstar” developer at $100,000, spend $15,000 on the search, and it takes 3 months to find them (lost productivity, anyone?). Bam! You’re already $52,500 in the hole before they even step in the door.

And it doesn’t stop there. CareerBuilder surveyed the damage, with companies losing an average of $18,700 per bad hire because of wasted resources, decreased productivity, and even legal issues. ⚖️

Remember, it’s not just about numbers. Bad hires drain team morale, damage your brand, and create toxic work environments. ☣️ Is that the legacy you want?

So, next time you’re tempted to rush a hire, think twice! Invest the time in crafting a meaningful job description, in a quality interview process, prioritize cultural fit, and make that first decision the right one. Your bank account, team, and sanity will thank you.

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