The Real Cost of a Bad Hire: How Expensive Is It Really - and What's the Impact?
- Michelle Denny
- 3 days ago
- 3 min read
Whether it’s a mismatch in attitude, ability, or alignment, the cost of a bad hire is more than frustrating - it’s expensive...
But how expensive, really?
In our blog series, we have explored why talent shortages happen, and what you can do to make your business more attractive to the right candidates. Now, we need to talk about what happens when it doesn’t go to plan - when the wrong person ends up in the role.

So, what is a bad hire costing your business?
Let’s start with the numbers.
According to the Recruitment & Employment Confederation, a bad hire at mid-manager level can cost a business over £132,000 when you factor in salary, lost productivity, training, rehiring, and impact on the team.And that’s just for one person.
But even outside of salary bands, the costs stack up. Think about it:
How many hours did you or your team spend sourcing, interviewing, onboarding?
How long did it take to realise it wasn’t working?
And how much energy will go into starting again?
When was the last time you measured that loss - not just in money, but in momentum?
The hidden costs: time, morale, and trust
Bad hires don’t just affect the bottom line. They affect people. Your people.
A poor cultural fit, lack of commitment, or underperformance can lead to:
Team frustration and strained relationships
Declines in morale and discretionary effort
Lost trust in leadership or the hiring process
And that ripple effect? It spreads.Even one misaligned hire can start to erode the culture you’ve worked hard to build.
The productivity dip you don’t see coming
Bad hires often don’t just not help - they slow things down.
Colleagues might have to redo work. Managers spend more time mentoring or managing around issues. Deadlines are missed. Customers feel it. Your reputation quietly takes a hit.
In the day-to-day of running a business, it’s easy to normalise these interruptions - to brush them off as part of the job. But they’re avoidable.
What would it be worth to you if your next hire hit the ground running, added value early, and lifted the team rather than draining it?
The false economy of “cheap” or rushed hiring
We often hear from SMEs who’ve taken a DIY approach to hiring - maybe using low-cost platforms, generic job ads, or leaning on internal referrals.
And that can work… sometimes.
But more often than not, these approaches skip the vital prep work:
Who are we really looking for?
What matters most in this role?
Are we evaluating in a structured, fair, consistent way?
When this groundwork isn’t done, it’s easy to hire based on convenience rather than alignment. And that’s when the cost creeps in.
It’s tempting to save £1,000 on the recruitment process… but if it ends up costing £100,000 in replacement, reputation and recovery, was it really saving at all?
It’s All Connected - And It Adds Up Fast
This isn’t just about one bad hire. It’s about all the things that come before it - and everything that comes after.
If you’ve been following the series, you’ll have seen how talent shortages, unclear messaging, or a weak candidate experience can quietly throw your whole hiring process off course. And when those issues aren’t addressed early, the consequences usually show up later - in who you hire, how they perform, and how long they stick around.
That’s where things get expensive.
Because when a hire doesn’t work out, the cost isn’t just starting over. It’s the wasted time, the impact on your team, the loss of momentum. It’s the reputational damage that’s harder to see - but just as real.
Ask yourself, where are the weak spots in your process - and how much are they really costing you?
What does “getting it right” look like?
Clear briefing: Everyone involved knows the role and what success looks like.
Values-based selection: You’re hiring for attitude, not just CV buzzwords.
Candidate experience: Your process reflects who you are - professional, human, fair.
Support and structure: You have trusted help at every step (that’s us).
It doesn’t have to be complicated. But it does have to be intentional.
If you are always reacting, you are already behind.
We know the pressure to “just get someone in” is real - especially when you’re juggling delivery, growth and team capacity. But it’s in those moments that shortcuts cause the most damage.
And we’re here to help avoid exactly that.
We get under the skin of your business
We ask the right questions upfront
We protect your time, your team, and your reputation
Ready to avoid the cost of getting it wrong?
If you’re even slightly unsure about your next hire - or you’ve had a hiring misstep in the past that’s still stinging – talk to us.
Because hiring well isn’t a luxury - it’s business critical.