The Cost of a Bad Hire
Take a moment to consider your most disastrous
hire. What did this mistake cost you in time, resources, and reputation?
In their book, Topgrading, Brad and Geoff Smart interviewed 52
organizations and asked them to calculate the true cost of their bad
hires. When factoring in the time wasted, lost production, and other
collateral costs, the true cost of a mis-hire of someone making $100,000 was estimated to be a staggering $1.5 million dollars.
Even more significant are the costs of opportunities lost, both now and in the future.
Our experience shows us that these costs for most
organizations range between 6 and 10 times the actual compensation paid
to the salesperson. For sales managers, this cost is even greater,
ranging up to 15 times the annual compensation!