3.1.3. The Cost of a Bad Hire 

According to a report ​(Laurano, 2015)​, 95% of organizations admit to making bad hires annually, costing them hundreds of thousands of dollars. Factors contributing to bad hires include a lack of standardized interview processes, weak employer branding, and poor candidate experiences. Bad hires can impact productivity, retention, engagement, and performance. A bad hire can damage the organization’s culture by creating negative morale and employee resentment. Maintaining a positive company culture is essential for employee satisfaction, productivity, and overall success. Making the right hires positively impacts brand and culture.

Organizations can mitigate the risks of bad hires by standardizing talent acquisition processes, strengthening employer branding, extending the new hire experience, and assessing candidates frequently.