Cost of a Bad Hire

How much does it cost to make a bad hiring decision? My guess is that for start up you will feel the ramifications of a bad hire for 12 to 18 months depending on how long the person stayed and the level of the position they filled.

Cost(length of stay, level of position)

It is very difficult to fund start ups and the tendency is to be cheap with hiring until you can afford it. Trust me, you cannot afford mistakes and it is either best to overpay for talent or do without. I am still seeing errors created with mid level employees that should have been terminated sooner. Of course, as the hiring manager, this is a tough pill to swallow as it reflects back on me and the executive team. Moreover, you are never sure when the cost will be fully paid, there are many mines buried out there and only through day to day operations can they be found.

Advice: pay for talent or put off the hiring until you can.