EQ Vantage Bad Hire Calculator
Hiring the right talent is crucial for the success of any business. However, making a bad hire can have far-reaching consequences that go beyond the initial recruitment process. Our Bad Hire Calculator is a tool that helps businesses quantify the financial impact of a poor hiring decision. It goes beyond the direct costs of recruitment and training to uncover the hidden expenses that can accumulate over time.
The true cost of a bad hire?
Have you ever calculated the true cost of a bad hire i.e., someone who leaves your business during their first year of employment?
In most cases, the true cost is a surprising 3.5 x their annual salary, which, clearly has a negative impact on business. Our unique Bad Hire Calculator uses the latest data* and industry research based algorithms to work out what the true cost is to you!
It costs more than you think…
Unrecoverable salary
Loss of business and reputation
Wasted management time
Lost productivity
Indirect staff turnover
Agency fees
How the Best Measure Success
Good companies assess their employee turnover, but exceptional companies consistently gauge their new employee retention rate and actively seek strategies to minimise the risk of early departures.
The Rationale
They grasp that the highest costs and lowest ROI happen within the first year. A poor hiring choice, resulting in an early departure, can amount to a cost exceeding 3.5 times the employee’s annual salary. For instance, a £100k hire leaving before their first-year anniversary could potentially set the company back over £350,000, a substantial detriment to their financial well-being.