Bad Hires Can be Costly

December 13, 2010 ( - Two-in-three companies (67%) responding to a recent CareerBuilder survey reported that a bad hire has adversely affected their business in the last year.

Nearly one in four hiring managers (24%) said one bad hire cost their business more than $50,000 in the last year. Four in ten said that one bad hire cost them more than $25,000.   

Of employers who made a bad hire, 36% said they think they made a mistake hiring someone because they needed to fill the job quickly, followed by lack of understanding of where their target talent is (20%) and unsuccessful sourcing techniques (9%).   

According to a press release, when asked how a poor hire affected their business in the last year, employers cited: 

  • Lost time to recruit and train another worker – 39%; 
  • Less productivity – 38%; 
  • Lost money to recruit and train another worker – 37%; 
  • Had a negative effect on employee morale – 30%; 
  • Had a negative effect on client relations – 21%; 
  • Fewer sales – 11%; and 
  • Legal issues – 9%. 


The survey found hiring costs have increased. Fifty-eight percent of employers have an average cost per hire of more than $1,000, up from 29% in 2008. Nearly one in ten (9%) estimate their cost per hire at more than $10,000.   

Specialized areas that are experiencing a shortage of qualified talent are reporting even higher recruitment expenses. Eighty percent of IT employers said it costs them in excess of $1,000 to fill an open position, while 66% of health care employers said the same.