The Disastrous Effects of a Bad Hire

It's always better to get something right the first time, and that includes hiring. Botching it up, as we know, can be very costly for your company and can result in a lot of lost revenue for agencies that are struggling to make replacement jobs.

So what are the effects, how costly is a bad hire?

Burning Money: The Disasterous effect of a bad hire can have a devasatating impact on your company

A recent estimate from the United States suggests that it costs $7,000 to replace a salaried employee, $10,000 to replace a mid-level employee, and $40,000 to replace a senior executive, while more calculations take the price up to $840,000 to replace a mid-level manager.

Which are all astronomical - and avoidable.

So what's a bad hire? That person who produces substandard work and misses their deadlines, who were always late and who didn't work well with others.

Oh yeah! That person. 

1. Employee morale

Along with the financial impacts of rehiring, companies who have a bad hire usually have to deal with morale and attitude problems. Negativity from a person on the team is infectious - if you've got someone with a bad attitude who's just not pulling their weight, you've got yourself some warning signs. Just like in the army, morale in the workplace can be a subtle indicator of failure or success.

2. Productivity

This is a knock-on effect of low employee morale coupled with the symptoms of a mismatched hire. Negativity + missed deadlines + inept communication = loss of productivity across the board.

3. Client relations

Just like the morale of your workforce, a bad hire can sour your company's relationships with your clients and suppliers as well. If your bad hire can't keep up a good attitude in the office, what makes you think they'll be able to do it around your clients?

4. Sales

This is all starting to add up, isn't it? Just make sure it's not adding up to minus figures. Bad hires can be a thing of the past if you have the right people on your side and the drive to fix a broken process.


It’s important to note that if you have a history of bad hires then there is something fundamentally wrong with the hiring process. However, your problem is solvable and you are most certainly not alone in this regard. If you as an employer you are working with an agency both sides need to take stock of the hiring process involved. Some practical steps you can take to reduce the likelihood of a bad hire include.

1. Cultural Fit:

Be open and honest with your recruiter about they type of person you are looking for and the type of people that they will be working with. Take a few moments to describe the person you want outside of their skills to do the job. Cultural fit in an organization is of the utmost importance and it’s why large American enterprises focus so much on your life outside of work in an interview situation as well as the achievements within it.

2. The Dreaded Job Specs:

Completely revise job specs and focusing entirely on skills, you can either broaden or shorten the search criteria for recruiters. If you shorten the criteria you can expect less CV’s, if you broaden your search criteria you can search for more. Whatever you decide always remember that the search for a recruiter starts with a spec so be willing to provide clear guidelines and minimum standards from the very outset even for smaller roles.

Most Agencies are happy to assist with testing and pre-screening as it also can help them understand the type of person that you like for the roll. The more informed the agency is the better they become at searching.

3. Turn it Around:

Try to turn the negative situation in to a positive one. People can begin to falter for a variety of reasons and not everyone is a lazy good for nothing. In the first three months, give people the benefit of the doubt in cases where it is appropriate and invite them to openly and confidentially discuss their work, their peers and any issues they’re experienced. This exercise can be a very revealing one about the company you think you have and what you actually have.

Have you seen any unusual effects of a bad hire? Have you turned one around? Share your experiences in the comments.



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