The True Cost of a Bad Hire


Making a bad hire can cost more than 5X the candidate’s salary!

Use our calculator to see what the wrong person can cost your organization.



The Cost of a Bad Hire

Need quality talent but struggling to justify recruiting fees? Take a whirl through our calculator to see why hiring the best talent is worth the investment.

Using the Calculator: How did we crunch the numbers?

The calculator will find the estimated cost of a bad hire by breaking down and summing:

  • The hourly rate of the hiring manager multiplied by the time spent sourcing, screening, interviewing and onboarding for the role.
  • The hourly rate of the employee multiplied by the time spent onboarding, training and ramping up for the role.
  • The average cost of advertising for the position.
  • The estimated cost of lost productivity.

Factors to Consider

Direct Financial Costs

1Sourcing and interviewing time costs
Time spent sourcing, screening and interviewing candidates for both the hiring managers and recruiting team.
2Advertising costs
Any fees associated with recruiting for the position such as advertising on job boards, Glassdoor, LinkedIn, Social Media and other outlets.
3Human Resources onboarding costs
Costs associated with contracts, setting the employee up with benefits, HR systems setup, company swag given to the new employee, etc.
4Lost wages from turnover
Was a new sales hire supposed to deliver $50K in new revenue? Did you miss revenue targets due to bad hires? Consider the ripple effects of turnover on the organization's revenue goals. This includes any severance or potential legal fees for the old employee when they're let go.

Loss of Productivity Costs

1Training and onboarding time
The time spent by HR, the hiring manager and teammates training and onboarding the new employee. Often, a bad hire will take up additional time from teammates if they're unable to get up to speed. This impacts their productivity as well as the productivity of the entire team.
2Stalled projects and unresolved issues
Was a new engineer supposed to fix system bugs? Perhaps a new marketer who was supposed to run a lead generation campaign? The impact of a bad hire extends across the entire organization and there are long-term costs associated with assignments that go unfinished.
3Covering for the bad hire after they leave
After the bad hire leaves, the entire hiring process must start over again. During this time, the rest of the team has to pick up the slack, taking on additional work and ultimately, impacting their ability to be fully productive.
4Time sink on the hiring manager
The hiring manager has to go through the interview process all over again when a bad hire leaves. This takes valuable time out of their schedule reviewing resumes and interviewing new candidates.

Cost of a Vacancy

1Lowered employee morale
Turnover impacts employee morale across the organization. It creates insecurity, lowers confidence in management, inhibits teamwork and has a direct impact on overall motivation.
2Inability to scale teams
Do you have employee headcount growth goals? How do open positions impact your ability to scale as an organization?
3Loss of market share
An inability to scale teams due to turnover can lead to a loss of market share in the future. Are competitors gaining an advantage due to better hiring practices?

Invest Now, Save Later

Read the blog post to learn:

  • Why calculating the cost of a bad hire is essential to growing an organization.
  • All of the elements to consider as you calculate your overall cost.
  • How partnering with Talent Solvers can help you find the right talent, today.


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talent, the first time.

Don't incur the costs of a bad hire.

Startups and Fortune 500 companies partner with Talent Solvers to hire talent that excels, exceeds and stays.

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