The Cost Of A Bad Hire

Hiring the wrong sales leader or salesperson can seriously hinder your business in more than one way. Why aren’t more companies taking the necessary steps to make sure their new person is right for their company?

Financial Cost 

When it comes to the cost associated with a bad hire, people often jump to financial loss. The United States Department of Labor states “the cost of a bad hire at up to 30% of the employee’s wages for the first year.” For example, if you take an employee with an annual income of $100,000, the organization’s cost loss can be $30,000.

CareerBuilder states, “74 percent of companies who made a poor hire lost an average of $14,900 per poor hire.” This might not seem like a lot, but for a smaller business, it can seriously hurt them.

But the cost of a bad hire isn’t always tied to merely financial loss.

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