The Center for Creative Management has been helping organizations and individuals realize their maximum potential since 1997. We help your organization select the right people for each position, and help managers learn how to take care of their staff so that your employees will want to stay with your organization and develop into top performers.

What is the cost of a bad hire?

Whether an employee leaves of their own accord or because of being fired, the cost is high. But what most employers don't factor in is just how much it costs when they have a mediocre to poor performer. There is a loss of productivity, morale, and quite possibly clients or customers. The average cost for employee turnover depends on the position filled and the salary paid for it, but typically ranges between 1 and 1.5 times the position's annual pay. ^1,2

To estimate what it costs when your organization has just one poor performer, try our free Cost of a Bad Hire Calculation. We think you will see that the cost savings realized from using the latest in employee selection technology can be enormous.

References
^{1 O'Connell, M. & Kung, M. C. (2007).  The cost of employee turnover.   Industrial Management, 49 (1), 14-19
2 Schlesinger, L. A. &. Heskett, J. L. (1991).  Breaking the cycle of failure in services.   MIT Sloan Management Review, 33 (3), 17-28}