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Episode 31: Don't make the mistake of a bad hire
Manage episode 362011382 series 3319083
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The cost of a bad hire can vary widely depending on the industry, level of position, and specific circumstances. However, here are some statistics to consider:
The cost of a bad hire can be up to 30% of the employee's first-year earnings. (Source: The Society for Human Resource Management)
According to a CareerBuilder survey, 41% of employers estimated that a bad hire cost them more than $25,000, and 24% said it cost them more than $50,000.
A study by the Center for American Progress found that the cost of replacing an employee who earns less than $50,000 a year is approximately 20% of their salary. For employees earning $50,000-$75,000, the cost of turnover increases to 30% of their salary. For executives or employees earning more than $75,000, the cost can be as high as 213% of their salary. The cost of a bad hire extends beyond just financial loss. It can also result in lost productivity, decreased morale, and a negative impact on the company's reputation. The length of time it takes to identify a bad hire can also impact the cost. #bad #hire #mistake
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