When it comes to making a bad hire, there are more repercussions than simply having to go through the hiring process all over again. It affects other people in your company, people who have a relationship with your company, and ultimately your bottom line. Here are 5 major costs of making a bad hire


1. It Impacts Other Employees

Whether the individual doesn’t have a team-oriented attitude or doesn’t meet expectation, it has a lasting effect on the people they are working with. The other employees’ own work suffers because they are constantly having to pick up the slack of the bad hires. If the person has a bad attitude, your other employees may simply no longer have the motivation to work there anymore and they decide to start considering moving on elsewhere. Ultimately, one bad hire could lead to one of your best employees walking out the door.  


2. It Can Affect Your Customers

One reason a person can be a bad hire is because they lack customer service wherewithal. They don’t understand their job responsibilities and are always looking for the easy way out, something your current customers will catch on to eventually. The cost of retaining a current customer is a lot cheaper than obtaining new ones, so your current customers must have consistent, positive interactions with your employees. One bad interaction could cause the loss of a current customer.


3.People’s Time Starts to Get Wasted

People’s time starts to get wasted from a bad hire, particularly managers’ time. Rather than coaching and developing all employees, they have to deal with the complaints of other employees along with constantly correcting the mistakes of the bad hire. They’re persistently having to micromanage the person, and in some cases, having to discipline the person over and over again for one reason or another.


4. The Cost of Having to Rehire

This is the obvious and most quantifiable cost. A bad hire leads to more recruiting costs as well as training expenses once the new hire is brought on.


These are only a few costs from a bad hire. There’s probably many more if one wanted to do some more digging. Either way, the cost is significant and it’s why the hiring process needs to be taken seriously. As stated, the cost is residual in that it not only hits your companies wallet, but also the morale of your employees and  relationships with your customers.