Calculate the True Impact Mis-Hires Have Had On Your Organization

Whether you’re a small business or a large company, a bad hiring decision can cost you time, resources and money. Find our Topgrading Calculators below and learn more about the negative impact a mis-hire has on your organization

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True Costs of a Bad Hire

Most managers agree that hiring mistakes are expensive and time consuming, but seldom do they quantify the negative impact. We have designed the cost of a bad hire calculator to show you just how much time and money is wasted when new hires underperform and/or do not fit your culture.

Estimate the costs of your mis-hires by using the calculator below. Start with people in key jobs - you will probably be very surprised at the results!

  • 1. Total costs in hiring the person:

    • Recruitment/search fees
    • Outside testing, assessment, record checking
    • Travel costs (for all candidates, spouses, other executives traveling to meet candidates)
    • Relocation (moving household goods, purchasing house for candidate)
  • 2. Compensation: (Sum for all years person was in job)

    • Base salary
    • Bonuses
    • Stock options
    • Benefits
  • 3. Maintaining person in job: (Sum for all years person was in job)

    • Training, courses
    • Travel, conferences
  • 4. Total Severance:

    • Severance fee (salary, benefits, use of office), any legal fees
    • Outplacement counseling fee
    • Administrative costs in separation, wasted time of people in separation
    • Costs in lawsuits caused by the person (EEOC, harassment, wrongful termination, constructive discharge, etc.)
  • 5. Mistakes / Failures, missed and wasted business opportunities:

    Did the person drive a key customer away, lose sales, miss quota, miss production goals, impair customer loyalty, launch three unsuccessful products? For example, if a salesperson had a quota of $500k and only sold $300k, the cost of their mistakes/failures would be $200k.

  • 6. Disruption:

    Costs of lower morale, driving away other employees, employee complaints, lower productivity, impaired teamwork

  • 7. Other:

    Including missed opportunity costs and the number of additional hours spent dealing with mis-hire’s weak points through performance improvement plans — patching things up with customers, etc. multiplied by your hourly salary

  • Hidden
  • ENTER YOUR E-MAIL ADDRESS TO RECEIVE YOUR TOTAL*:

The estimated cost of a bad hire ranges from 5 to 27 times the amount of the person's actual salary.

TG mis-hire pie chart

The costs of mis-hires can be staggering. Bad hiring decisions not only waste time, money and resources, they also impact employee morale and can put the company at risk for litigation. Learn more about the high costs of mis-hires in our blog.

With Topgrading, companies can significantly decrease the costs of mis-hires. The average mis-hire rate for companies not using Topgrading is approximately 70%. Companies using Topgrading, on average have decreased their mis-hire rates by 85%.

 

Topgrading Mis-hire Rate

 

Mis-hire rate
before
Topgrading

Mis-hire rate
after
Topgrading

%
change in
mis-hire rate

69.3%

10.5%

-85.1%

Read how companies have experienced success with Topgrading in our numerous Case Studies.

The Harsh Truth: Bad Hires Waste Time.

Most managers agree that hiring mistakes are expensive and time consuming, but seldom do they quantify the negative impact. Consider the vast number of hours spent by managers, peers, teams and HR cleaning-up after a mis-hire. We have designed the time wasted calculator to show you just how much time is wasted when new hires underperform and/or do not fit your culture.

Estimate the number of hours of your mis-hires by using the calculator below. Start with low to poor performers in key jobs - you will probably be very surprised at the results!

  • Each week, how many hours were wasted by that person’s MANAGER preventing problems, dealing with problems this person created, or picking up the slack?
  • Each week, how many hours were wasted by that person’s PEERS preventing problems, dealing with problems this person created, or picking up the slack?
  • Each week, how many hours were wasted by that person’s TEAM preventing problems, dealing with problems this person created, or picking up the slack?
  • Each week, how many hours were wasted by OTHERS (in a different group, division, etc.) preventing problems, dealing with problems this person created, or picking up the slack?
  • In total, how much HUMAN RESOURCES time was wasted dealing with employee relation issues, advising that person’s hiring manager, creating performance improvement plans, documentation, etc.?
  • ENTER YOUR E-MAIL ADDRESS TO RECEIVE YOUR TOTAL*:

Mis-hires cause, on average, an additional 300 hours worked

The number of hours wasted as a result of a bad hire can be surprising. Bad hiring decisions impact productivity, company culture, and potentially customer retention. Read our blog on for tips to determine if a potential candidate is a high performer.

With Topgrading, companies can significantly improve the results of their hiring process. The average mis-hire rate for companies not using Topgrading is approximately 70%. Companies using Topgrading, on average have decreased their mis-hire rates by 85%.

 

Topgrading Mis-hire Rate

 

Mis-hire rate
before
Topgrading

Mis-hire rate
after
Topgrading

%
change in
mis-hire rate

69.3%

10.5%

-85.1%

Read how companies have experienced success with Topgrading in our numerous Case Studies.

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