/  About Us / Details
October 8, 2019

The Alarming Costs of a Bad Hire & How to Avoid Them

Every organization wants to hire best-fit employees. However, if your HR team does not have the proper tools, resources and processes in place, poor hiring decisions can be made, resulting in negative impacts upon your business’ bottom line, productivity, morale and much more.

The data regarding the cost of a bad hire is stark:

  • According to a CareerBuilder survey, 75% of employers said they have hired the wrong person for a position, and of those who had a bad hire affect their business in the past year, one bad hire cost them, on average, nearly $17,000.[1]
  • The Department of Labor estimates the price of a bad hire as 30% of the employee’s first-year earnings.[2]
  • SHRM found that replacing supervisory, technical and management personnel can cost from 50% to several hundred percent of the person’s salary.[3]

And the negative consequences can extend far beyond the direct financial blow. A bad hire can affect your business by[4]:

  • 36% Less productivity
  • 33% Compromised quality of work
  • 31% Employee morale negatively affected
  • 30% Lost time to recruit and train another worker
  • 29% Excessive time assisting bad hire

So, what can your organization do to avoid all of this?

Download our Hiring & Onboarding Toolkit Today.

Best practices indicate an automated, integrated human capital management system is critical. A quality HCM system will assist your HR team through the entire hiring process, including identifying, pre-screening, recruiting, interviewing, hiring and onboarding best-fit employees. When this automated environment is in place, tedious, time-consuming HR administrative tasks are reduced, so that HR can focus on people, not processes.

Further, HCM tools enable organizations to automate applicant correspondence through configurable emails, schedule interviews and maintain notes, so that recruiters and hiring managers can focus on best-fit candidates throughout the interview process.

Not only will your HR team benefit from a streamlined HCM system, so too will your applicants, which ultimately enables you to land the employees you want. Today’s job applicants expect a simple, intuitive online experience, and when this is not available to them, many will give up on the process. Those who give up very well could have been the top talent you were looking for. Conversely, organizations that have invested in optimizing the applicant experience report that the quality of their hires improved by more than 70%.[5]

In short, implementing a single-source human capital management platform creates a streamlined and efficient process for finding, qualifying, interviewing, hiring and onboarding best-fit employees who will make positive contributions to your business.


[1] CareerBuilder, More Than 1 in 4 Employers Do Not Conduct Background Checks of All New Employees (November 2016) http://www.careerbuilder.com/share/aboutus/pressreleasesdetail.aspx?ed=12/31/2016&id=pr975&sd=11/17/2016.

[2] Fred Yager, The Cost of Bad Hiring Decisions Runs High, http://insights.dice.com/report/the-cost-of-bad-hiring-decisions/.

[3] Ibid.

[4] CareerBuilder.

[5] 8 Brandon Hall Group, 10.

COVID-19 Resources

Access all COVID-19 related articles to help your business respond to the pandemic.

Insights in Your Inbox