Hiring is one of the most important decisions any organization makes. But leaders often face a dilemma: should you fill a role quickly to avoid the cost of vacancy, or wait for the perfect candidate to avoid the repercussions of a bad hire? Both paths come with risks—and both carry a real price tag.
According to the Society for Human Resource Management (SHRM), the average cost to hire is nearly $4,700 for a typical role and can rise to $28,000 for executives. Add in onboarding and training, and each hiring decision represents a major investment. When the hire doesn’t work out, the ripple effect is costly and disruptive.
The True Cost of a Bad Hire
A bad hire is more than just a misstep—it’s a drain on finances, productivity, and morale.
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Financial losses: SHRM estimates onboarding and training alone cost upwards of $1,400 per employee. If a new hire leaves quickly, these dollars are wasted.
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Productivity setbacks: The National Business Research Institute (NBRI) reports that the cost of a bad hire can equal 30% of the employee’s first-year earnings—a mid-level manager making $60,000 could cost the business $18,000 in lost productivity and rehiring expenses.
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Customer impact: Poor performance can directly affect client relationships. Research shows 32% of customers stop doing business with a brand after one bad experience.
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Culture and morale: Gallup’s State of the Global Workplace found that disengaged employees cost the global economy $8.8 trillion, or 9% of world GDP. A bad hire’s negative attitude can spread, driving top performers out and creating long-term cultural damage.
The bottom line: a bad hire costs far more than money—it costs momentum, reputation, and trust.
The Cost of Leaving a Position Vacant
On the other hand, unfilled roles carry their own risks. According to Upwork, the cost of vacancy is calculated by multiplying the daily cost of a role by the number of days it remains open. For a position valued at $500 per day, a 36-day vacancy equals $18,000 in lost productivity.
Vacancies also increase the workload on current employees, leading to burnout and turnover. A Forbes survey found that 95% of HR leaders believe burnout is sabotaging retention, accounting for up to 20% of annual turnover. Meanwhile, research from Northwestern University shows that doubling the time it takes to fill a job can result in a 3% drop in profits and a 5% decline in sales.
Striking the Right Balance
Both bad hires and prolonged vacancies are costly, but the solution isn’t simply to choose speed over quality, or vice versa. The key is building a hiring process that balances urgency with accuracy.
That means:
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Defining role expectations and success metrics before you start searching.
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Using structured assessments to evaluate both skills and cultural fit.
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Leveraging temporary or contract staffing to ease the pressure of vacancies.
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Investing in retention and succession planning to reduce hiring churn.
Understanding the tradeoffs between the cost of a bad hire and a vacancy helps leaders make more strategic, data-driven decisions.
Why Partnering with Experts Matters
Navigating this balance is difficult when you’re also running a business. That’s where Lucas James Talent Partners comes in. Our project-based recruiting model helps organizations:
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Reduce the risk of mis-hires by rigorously vetting candidates for skills and cultural fit.
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Shorten vacancy periods by giving you access to broader talent pools.
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Align hiring strategies with long-term growth goals without the burden of long-term contracts.
Conclusion
Hiring isn’t just about filling a seat, it’s about building the foundation for future success. Bad hires drain resources and morale, while long vacancies can stall growth. With the right partner, you don’t have to choose between the two risks.
Lucas James Talent Partners helps you find the right talent, at the right time, with the right approach, so your team and your business can thrive.