The True Cost of a Bad Hire

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Hiring is hard. Bad hires make it worse.

When we think about hiring mistakes, we often picture the obvious ones: the person who lied on their CV, the one who never showed up, or the manager who left chaos in their wake. But most bad hires don’t start out as clear mistakes. They often seem fine on paper, blend in at the start, and only reveal their impact over time.

In this episode of Veremark Unpacks, we explore how companies make hiring decisions that end up hurting their teams, and what can be done to prevent that from happening.

What makes someone a bad hire?

It could be someone who creates friction in the team, struggles with feedback, or quietly falls behind. Sometimes the signs were already there, but the process didn’t catch them. A rushed interview, a poorly defined role, or a screening process that only checks for qualifications can miss important details about a person’s behaviour and working style.

In some cases, even a qualified candidate can fail in the role if they are not properly onboarded or given the context they need to succeed.

The cost adds up

Veremark’s report breaks down a real example of a mid-level manager who ended up costing the company over $180,000. This includes onboarding, salary, leadership training, and time spent managing the fallout. It also includes harder-to-quantify effects like lower morale, missed targets, and increased attrition. These are not rare situations. They happen in companies with good intentions and clear goals, but weak hiring practices.

What makes a hiring process more reliable?

A strong process pays attention to both what a candidate says and what their history shows. This means checking for consistency, talking to past employers, and using structured interviews to compare candidates fairly. Cultural fit is not about personality type but about alignment in values and work style. If someone prefers independence but the team needs tight collaboration, that mismatch matters.

Background screening also plays a role. Done properly, it can highlight missing experience, exaggerated claims, or past misconduct that could affect future performance. These checks are not about catching people out, but about getting a clearer picture before a decision is made.

Hiring with intent

Hiring is always a judgment call, but it doesn’t have to be guesswork. When teams invest in clarity, structure, and the right checks, they put themselves in a better position to make decisions that last. The episode offers practical insight into how to design a hiring process that reflects what your team actually needs.

🎧 Listen to the podcast or download the report to learn more.

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FAQs

What background check do I need?

This depends on the industry and type of role you are recruiting for. To determine whether you need reference checks, identity checks, bankruptcy checks, civil background checks, credit checks for employment or any of the other background checks we offer, chat to our team of dedicated account managers.

Why should employers check the background of potential employees?

Many industries have compliance-related employment check requirements. And even if your industry doesn’t, remember that your staff have access to assets and data that must be protected. When you employ a new staff member you need to be certain that they have the best interests of your business at heart. Carrying out comprehensive background checking helps mitigate risk and ensures a safer hiring decision.

How long do background checks take?

Again, this depends on the type of checks you need. Simple identity checks can be carried out in as little as a few hours but a worldwide criminal background check for instance might take several weeks. A simple pre-employment check package takes around a week. Our account managers are specialists and can provide detailed information into which checks you need and how long they will take.

Can you do a background check online?

All Veremark checks are carried out online and digitally. This eliminates the need to collect, store and manage paper documents and information making the process faster, more efficient and ensures complete safety of candidate data and documents.

What are the benefits of a background check?

In a competitive marketplace, making the right hiring decisions is key to the success of your company. Employment background checks enables you to understand more about your candidates before making crucial decisions which can have either beneficial or catastrophic effects on your business.

What does a background check show?

Background checks not only provide useful insights into a candidate’s work history, skills and education, but they can also offer richer detail into someone’s personality and character traits. This gives you a huge advantage when considering who to hire. Background checking also ensures that candidates are legally allowed to carry out certain roles, failed criminal and credit checks could prevent them from working with vulnerable people or in a financial function.