True cost of a bad hire and how managed solutions can help

The true cost of a bad hire and how Managed Solutions can help you avoid It

Hiring the wrong person is more than an inconvenience, it is a costly mistake that can have far-reaching consequences for your business. While most companies are aware of the obvious costs, such as recruitment fees and onboarding time, the true cost of a bad hire is often far greater than it first appears.

The Hidden Costs of a Bad Hire

According to Business.com, replacing a bad hire can cost up to 30% of that employee’s first-year salary and for senior or business-critical roles, the financial impact can be significantly higher. Some assessments estimate the total cost of a mis-hire at £190,000 to £670,000, once you include lost productivity, management time, reduced team morale, and potential reputational damage.

And the consequences don’t end there! A CareerBuilder survey found that 75% of employers admitted to making at least one poor hiring decision!

According to Shortlister, a disengaged employee can reduce team morale by up to 30%, while also contributing to a 29% decrease in turnover among top performers.

In some cases, bad hires have been linked to a 36% drop in productivity, as teams are left picking up the slack and key projects slow down or stall.

Clearly, the wrong hire can have a profound effect on your people, your operations, and your bottom line.

How outsourcing your recruitment can help

The good news is you do not have to take on this risk alone. Working with a trusted Managed Service Provider (MSP) or Recruitment Process Outsourcing (RPO) partner like Operam Managed Solutions can significantly reduce the chance (and the cost) of a bad hire.

Reducing Risk

An experienced MSP or RPO partner brings structure, rigour, and objectivity to your recruitment process. From robust screening to behavioural assessments, we help ensure that only the most suitable candidates reach your hiring managers.

Data-Led Hiring Decisions

We use pre-employment testing, skills assessments, and data insights to ensure a strong cultural and technical match. This approach can reduce turnover by up to 30%, helping you build teams that perform and stay.

Scalable and Flexible Support

Whether you are hiring for a new project, expanding into a new market, or facing seasonal peaks, Operam gives you access to a flexible, on-demand talent pool without the burden of long-term headcount commitments.

A Strategic Recruitment Partner

We do not just fill vacancies, we embed ourselves in your business, align with your goals, and continuously refine the process to deliver tangible value and long-term success.

Whether you are recruiting for a single critical role or scaling an entire team, getting it right the first time matters.

Operam Managed Solutions are committed to helping you make better hiring decisions, reduce risk, and build high-performing teams.

Is it time to strengthen your recruitment process?

Discover how our managed recruitment solutions can help you hire faster, and with confidence