08th Mar 2022

The true cost of a bad hire

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Bad hires cost way more than you think.

In most cases, the true cost of a bad hire is roughly 3.5x of the person’s annual salary.

Why so much? You gasp.

First, there’s the hiring process. The time it takes you to create an advert and associated costs. The hours you spend reviewing the applications. Many more hours conducting interviews. Screening and referencing. And all the back and forth with any applicants you’re interested in.

If an agency was involved - factor in those costs too.

Then there’s the cost of salaries, training and onboarding, and any additional tech and licences they’ll need access to. It all adds up.

You should also factor in the people involved in the process and how that impacts productivity.

So what happens if they don’t pass probation? Or decide to leave real fast.

You’ve just spent everything outlined above, morale has taken a hit, and you need to do it all over again (or absorb the costs of not making that hire).

The long and short of it? Poor hires cost a lot.

We can confidently say the cost of a bad hire on your wider team’s wellbeing, productivity, and morale outweighs the monetary implications – which also aren’t great.

Say your new hire isn’t quite pulling their weight for whatever reason – maybe they’re in over their head or lacking interest. Someone else will have to make up for it. And who wants to be the one picking up the slack and getting burnt?

There’s only so long your other staff will smile through it, and then you risk losing out on even more people.

Bias in the interview process which will influence the likelihood of making bad hires too. When you’re a part of the business day in and day out, you see things differently than someone looking in.

If you immediately gel with a candidate, you’re more likely to interpret their answers favourably as the interview unfolds. Or you may ignore red flags. And the same happens in reverse, where you could be harsher on someone because you don’t really get them. Subconsciously looking for flaws to prove that your impression is right.

The long and short of it is – these are easy mistakes to make and they cost an absolute fortune.

That’s why we built Primaire Precision. Science and data helps you make better hiring choices while reducing bias. Slick technology keeps the right people engaged throughout the process. A beautifully intuitive and accessible platform makes for a better experience for everyone, on any side of the hiring desk.

It’s been worth all the hard work, because bad hires cost more than just money.

Want Primaire Precision to help you cut the costs of bad hires forever? Talk to us today.

Try our calculator now to see what you could save

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