What is one bad hire actually costing you?
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?
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
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.
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