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The True Cost of a Bad Hire

Writer's picture: Primus ConnectPrimus Connect

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What is the true cost of a bad hire?


A bad hire isn’t just an HR hiccup—it’s a costly mistake that ripples across a business, affecting finances, morale, and productivity. While every organisation wants to get recruitment right, one wrong decision can have far-reaching consequences. 

 

This blog blends hard-hitting statistics with insights on how to avoid costly recruitment mistakes. Let’s break down why a bad hire is so damaging and what you can do to safeguard your team and your bottom line. 

 


The Financial Fallout


Hiring is a significant investment, and a poor decision can turn it into an expensive lesson. Research shows that a bad hire can cost a business up to 30% of its annual salary (SHRM). For a mid-level Data Engineering role paying £65,000, that’s a direct hit of £19,500—not including indirect costs like lost productivity or team disruption. 

 

Onboarding alone is no small expense. The average cost of recruiting and training a new hire exceeds £30,000 once you factor in recruitment fees, induction, and the inevitable dip in efficiency during their settling-in period (Forbes). 


The Hidden Cost to Morale and Productivity


It’s not just the finances that take a hit. A poor hire often disrupts team dynamics, reducing morale and performance. A poorly aligned employee can lower team productivity by up to 30% as colleagues step in to cover gaps or address issues (LinkedIn). 

 

Managers aren’t immune either—on average, they spend 17% of their time (nearly a full day each week) addressing problems caused by underperformers (Refapp). This time could be spent driving strategic initiatives or supporting high-performing employees. 


A Chain Reaction


One poor hiring decision often leads to others. According to industry reports, 80% of employee turnover stems from bad hires (Forbes). When a bad hire disrupts the balance of a team, it can cause even your most dedicated employees to reconsider their position, creating a ripple effect of instability and additional recruitment costs. 

 

 

Mitigating the Risk


The true cost of a bad hire underscores the importance of a proactive, thorough hiring strategy. Here are some actionable steps businesses can take: 


  1. Define the Role Clearly 

Ensure job descriptions accurately reflect responsibilities, expectations, and cultural fit to attract the right candidates. 

  1. Strengthen Screening Processes 

Use structured interviews and skills assessments to gauge technical expertise and, just as importantly, how the individual aligns with company values. 

  1. Invest in Onboarding 

A comprehensive onboarding programme ensures new hires are set up for success from day one. 

  1. Leverage Recruitment Experts 

Partnering with a recruitment agency that understands your business needs can help you identify top talent and minimise risks. 

 

The Bottom Line


A bad hire isn’t just a bump in the road—it’s a costly mistake with implications far beyond the individual role. By understanding the risks and implementing robust hiring practices, businesses can safeguard their teams, productivity, and bottom line. 

 

At Primus, we specialise in connecting businesses with the right talent—because your next hire should be a catalyst for success, not a costly regret. Let’s get it right together.


Get in touch with one of our experts for a bespoke hiring strategy. 



 




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