ED. 01 · 2026

Your last bad hire cost more than you think.

Salary is only the surface. Lost output, team drag, manager time, and delayed execution make the real cost far higher.

213%
of salary lostSource: CAP
30–40%
team dragSource: Gallup
80%
turnover from hiring mistakesSource: HBR

team drag

5 people

detection

6 months

Live preview

calculating
Salary$120,000
Detection6 months
Replacement3 months
Team affected5 people
SenioritySenior

True cost

$284,320

237% of annual salary

Productivity

$45k

Team drag

$135k

Manager

$15k

Replacement

$89k

Used by founders, COOs & people leaders

Mercer·GroupAldenwoodFjord CapitalHalberd

The hidden ledger

Most companies measure hiring on cost-per-hire. They miss the bill that arrives after.

Output collapses early

A struggling hire produces a fraction of expected output for months before anyone admits the problem.

The team absorbs the slack

Peers cover gaps, rework deliverables, and lose focus. Productivity bleeds across the org chart.

Leadership pays in time

Managers redirect 17%+ of their week to coaching, escalations, and damage control.

Methodology

Built on published research, not vibes.

Cost components are derived from CAP, Gallup, SHRM, and Harvard Business Review studies. Seniority multipliers reflect compounding ramp-up, opportunity cost, and decision-impact range.

monthly_salary = annual_salary / 12
lost_productivity = monthly × months_to_detect × 0.5
team_drag = monthly × teammates × 0.3 × months_to_detect
manager_cost = monthly × 0.17 × months_to_detect
replacement_cost = monthly × months_to_replace × 1.2

total = (sum) × seniority_multiplier

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