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How Much Did That Bad Hire Really Cost You?

The US Department of Labor estimates a bad hire costs at least 30% of the employee’s first-year earnings. Most research puts it much higher. Find out your real number.

6 mo
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Did you use a recruiter or job board?

The true cost of a bad hire — and why it’s usually underestimated

The U.S. Department of Labor estimates a bad hire costs at least 30% of the employee’s first-year earnings, and most research puts the real figure far higher once you account for severance, the vacancy, manager time, and the productivity lost while a replacement gets up to speed. This calculator adds those components together so you can see the full picture, not just the obvious costs.

A single bad hire is rarely just bad luck — it usually points to a fixable gap in your hiring process, job descriptions, interview structure, or onboarding. Understanding what a mis-hire actually costs makes the case for getting those systems right, especially for a growing Triangle business hiring several people a year.