Different sources report varying estimates for the monetary losses incurred after hiring the wrong individual. The U.S. Department of Labor estimates the true cost of bad hires to be around 30 percent of the individual’s salary. While other experts report the cost ranging from $50,000 up to $240,000. The CEO of Zappos once estimated the true cost bad hires had cost his company, “well over $100 million.”

Overall, the dollar amount depends on the individual’s salary, benefits, and special training, in proportion to the amount of time the unfit individual remains working in the wrong position in your organization.

Don’t Get Too Lost in the Numbers

Monetary loss isn’t the only repercussion of hiring the wrong person.

The damage to your organization’s bottom line is only one concern; selecting the wrong person for a position (especially a high-level position) can also impact:

  • Employee Morale – Frequent turnover of management-level staff goes hand in hand with frequent changes in workplace culture, processes, and policies, leading to turmoil and unmet expectations among lower-level staff. With so many changes, employees craving stability in their work environment quickly become disheartened.
  • Time and Productivity – The longer a position remains unfilled or filled by the wrong individual, the more time and productivity are lost due to both inertia and the deleterious effect on workplace morale caused by the inadequately filled position.
  • Perception of Management – When management selects the wrong person to fill any position in an organization, employees, and others in the organization might begin to question management’s judgment.
  • Reputation in the Community – Employees are not the only witnesses of poor hiring decisions; the community will also see the turnover.

Focus on Hiring Right the First Time with a Retained Executive Search Firm

Healthcare organizations are not immune to incurring damages from hiring the wrong individuals, especially in Director-level through C-Suite positions.

The Rokos Group is a retained executive search firm, specializing in the recruitment of Director-level through C-Suite positions in the healthcare care industry. We focus on creating long-lasting, mutually beneficial professional relationships by placing the right candidates in exactly the right positions, helping our clients avoid the costly impact of selecting the wrong candidates.


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