Whilst there isn't a one-size-fits-all formula, some studies estimate the cost of a bad hire can be anywhere from 20% to 300% of an annual salary depending on seniority and impact. These costs can include:
- Hiring Costs
- Onboarding Costs
- Cost of Salary & Benefits
- Loss of Morale
- Loss of Productivity
- Missed Opportunity Cost
- Remedy Time Cost
- Other Client or Internal Implications
- Legal & Termination Fees
You can use our bad hire cost calculator to see how much a bad hire might cost your business if it doesn't work out at any point within the first year...
Bad Hire Estimated Cost Calculator
*We've made some assumptions in our calculator based on evidence which show the potential cost to businesses of making 'bad hires'. This calculation is intended to be indicative and thought-provoking and is not intended to be formal advice or otherwise relied upon. The actual cost of a bad hire is in part subjective and factors used in this calculation may vary significantly on a case-by-case basis.
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