ARTICLES

The commonly cited cost of a bad hire, one to three times annual salary, is probably the most underestimated figure in business. It accounts for recruitment costs, training, and the productivity gap while the role is vacant or underperforming. It does not account for the things that are harder to put a number on.

A poor hire in a team-facing role affects the people around them. Their colleagues carry more weight, absorb more friction and in some cases begin their own quiet exit.

A poor hire in a leadership role multiplies the impact, every person in the team is affected by the quality of their direct leader, and a leader who is misaligned with the role or the culture can undo months of progress in a matter of weeks.

The less discussed cost is the opportunity cost.

Every month a business spends managing a misaligned hire is a month not invested in the people who are performing well. Leadership attention is finite. When it is diverted to performance management that should not have been necessary, it is diverted from development, recognition and the strategic conversations that move the business forward.

Most poor hiring decisions are not the result of bad luck. They are the result of insufficient clarity about what the role actually requires, technically and behaviourally, and a hiring process that was designed to fill the seat rather than find the right person for it.

Slowing down the front end of a hiring decision consistently saves significant cost and disruption on the back end.

If you want practical support reviewing your workplace policies, contracts, leadership capability, or workplace culture, Blue Kite HR Consulting can help you take a proactive approach before issues become bigger problems.