Bad hire cost calculator
Estimate the order of magnitude of the financial risk of a mis-hire in a key position, based on published benchmarks.
Estimated cost of a bad hire
Low estimate–
High estimate–
For comparison: specialist recruitment firm fees generally represent 15% to 30% of annual compensation, i.e. –.
Secure my next hireMethod and sources
- Low estimate: at least 30% of first-year earnings, the floor commonly cited from the US Department of Labor.
- High estimate: up to 150% (manager), 200% (director, top of the SHRM range for replacing an employee) and 213% (executive, Appelbaum & Milkman study cited by the AESC).
- In France, the average cost of a failed hire is estimated at €30,000 to €150,000 (Manpower, HR Voice, Opensourcing).
- These figures are orders of magnitude from studies; they do not include the specific impact on your revenue, teams or customers.
Sources
Further reading
Hiring cost · 5 min read
How much does a bad hire cost?
Key figures, hidden costs and the levers to secure your strategic hires.
ReadMethod · 5 min read
How to choose a recruitment firm: 8 questions to ask
Expertise, contact, guarantee, fees: the questions that make the difference.
ReadSourcing · 5 min read
Passive candidates: why job ads are not enough
The best people are in post and do not read your ads. How to reach them.
Read