Cost of a bad hire calculator
Bad hires are one of the biggest hidden costs in a growing company. Enter two numbers to see a source-backed estimate of what they cost you each year — then see how to stop paying it.
How this calculator works
Every number here is tied to published research — no invented figures. It's a directional estimate, not a precise quote.
Bad-hire rate: 46%
Leadership IQ's study of 20,000+ new hires found 46% were deemed failures within 18 months. We use this as the share of your hires that don't work out.[1]
Cost: 16%–213% of salary
The Center for American Progress estimated replacement cost at ~16% of salary for lower-wage roles, up to 213% for senior and executive roles.[2]
A range, not a single number
Real cost depends on the role, salary, and how long the mismatch lasts. For context, CareerBuilder pegged the average bad hire at about $14,900 across all roles.[3]
The best way to lower this number? Stop the bad hire.
You can't recover the cost of a bad hire after the fact — you can only avoid it up front. That means screening candidates on real work and behaviour, not just resumes and interviews.
Appli runs automated work trials that show how a candidate actually performs before you commit, then ranks every applicant on the same criteria.
- See a real sample of a candidate's work
- Predict on-the-job behaviour before hiring
- Score every applicant consistently
of new hires are deemed failures within 18 months — most for behavioural reasons a resume never shows.
Leadership IQ, “Why New Hires Fail.” Source