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...