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What is the true cost of a bad hire?

Have you ever calculated the true cost a bad hire i.e. someone who leaves your business during their first year of employment? In most cases, the true cost is roughly 3.5 x their annual salary which, clearly has a negative impact on business. Our unique Bad Hire Calculator uses the latest data* and super clever algorithms to work out what the true cost is to you!

Direct Fees

Unrecoverable Salary Icon

Unrecoverable Salary Weeks, months or years the mis-hire or under-performer had/has been with the company

0*

Wasted Training Icon

Wasted Training Costs associated with the education and training of mis-hires and under-performers can be estimated as a share of company’s total annual investments into this area

0*

Recruitment Training Icon

Recruitment Agency Fees Recruitment agency fees for the mis-hire and replacement.

0

Management Time

Wasted Management Time Time spent by senior staff members e.g. hiring manager and a director with a combined average salary of 1.5 times the hire.

0*

Management Time

Lost Productivity Lost productivity until reaching optimal levels (1st + 2nd months = 25% productivity, 3rd + 4th months = 50% productivity, 5th month = 75% productivity)

0*

Indirect Fees

Loss Team Productivity Icon

Lost Team Productivity Five team members with average salary of 75% of the hire at an average 80% productivity for ten months. (five months before replacement employee joined + five months until replacement employee reached optimal productivity)

0*

Staff Turnover Icon

Indirect Staff Turnover Senior Team Member leaves the company as a result of the problematic structure and work dynamics. Salary estimated at similar to hire times 120% as per Oxford Economics (2014).

0*

The true total cost of a bad hire is...

0

If you’d like to de-risk your hiring process.

Please book some time with us and we’ll show you how…there’s no obligation.

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*Results based on formulas from Perfect Match (Making the right hire and the cost of getting it wrong) Study
researched & published by the Recruitment & Employment Confederation October 2017