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What is one bad hire actually costing you?

$17,000

is the average cost of one bad hire for a small business.

US SBA, SHRM, and Department of Labor data

Most owners underestimate it by 3 to 5x. Answer three questions and we'll show you the real number for your business.

Cost of a Bad Hire

Find out what one bad hire actually costs your business.

What's the annual salary for this role?

The Breakdown

What This Number Means

The cost of a bad hire isn't just the severance check. It compounds across three areas.

Hiring & Replacement

Job postings, recruiter fees, interview hours, background checks, onboarding, then doing it all over again when the hire fails.

30–50% of annual salary

Lost Output

Vacant seats, ramp-up time, missed deadlines, dropped clients. The work doesn't stop, it just falls on everyone else.

Up to 3x monthly salary per month vacant

Morale Impact

Bad hires drain your best people. Resentment builds, productivity drops, and your A-players start updating their own resumes.

The hidden cost most owners never count

FAQ

Bad hire cost: common questions

How much does a bad hire actually cost?

The U.S. Department of Labor estimates a bad hire costs about 30% of the employee's first-year salary. Once you add lost productivity, management time, and rehiring, the real number for a typical small-business role lands around $17,000 or more.

How is the cost of a bad hire calculated?

Add four things: recruiting and advertising, the salary you paid for subpar work, the management hours spent coaching and documenting, and the cost to rehire and retrain a replacement. This calculator runs that math for you in about 60 seconds.

What counts as a bad hire?

Any hire who leaves or is let go inside the first year, or who stays but performs well below what the role needs. Both cost you money, and both usually trace back to the hiring process, not the person.

Is the Bad Hire Calculator free?

Yes. It's completely free with no email required. Enter the salary, how long the person stayed, and a couple of details, and you'll see the real cost instantly.

Stop paying the bad hire tax.

The 10-phase hiring system gives you the process, scripts, and scorecards to make every hire the right hire. For less than the cost of one bad hire.

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