A Career Builder survey of 6,000 hiring managers and human resource professionals found that a bad hire cost them at least $25,000, and even up to $50,000.
Research by Leadership IQ found that 46% of 20,000 new hires failed within 18 months, and another 45% were found to be marginal performers.
The Career Builder survey found that the costs could also be higher due to lost worker productivity, time and expense in recruiting and training another employee and the potential damage in client relationships.
The Cost of Bad Hires varies by Country
- U.S.: $50,000.
- Germany: €50,000 ($65,231).
- U.K.: £50,000 British pounds.
- India: 2 million Indian rupees ($37,150)
- China: 300,000 CNY ($48,734).
In an article in Fast Company, Rachel Gillett wrote about Zappos CEO Tony Hsieh who offers new hires $2,000 to leave the company and his policy is that of hiring slowly and firing quickly said that his past bad hires have cost his company over $100 million.
21% of companies admitted that they hired poorly because they didn’t take the time to properly test and research the employee’s skills.
Mindflash have produced this infographic of the key findings from the Career Builder survey.