Bad Hires Affected Nearly Seven in Ten Businesses in Past Year According to CareerBuilder Survey

Nearly seven in ten businesses were affected by a “bad hire” of a worker in the past year and nearly one in four employers reported a bad hire cost them more than $50,000, according to a CareerBuilder survey of nearly 2,500 hiring managers and human resource professionals that shows the cost of incorrectly choosing a new employee can be high. More information about the survey can be found at:

The CareerBuilder study revealed that 69 percent of employers reported that their companies had been adversely affected by a bad hire in 2012, with 24 percent of those businesses saying a bad hire cost them more than $50,000 and 41 percent estimating the cost to be over $25,000.

“Whether it’s a negative attitude, lack of follow through or other concern, the impact of a bad hire is significant,” Rosemary Haefner, Vice President of Human Resources at CareerBuilder, stated in a press release. “Not only can it create productivity and morale issues, it can also affect the bottom line.”

As for the reasons why companies make bad hires of employees who are too unfit, unqualified, dishonest, or dangerous for their jobs, the survey found the most common reason associated with a bad hire was rushing the decision process with two in five hiring managers attributing a bad hire to pressure to fill the job opening. The top reasons for a bad hire were:

  • Needed to fill the job quickly – 43 percent
  • Insufficient talent intelligence – 22 percent
  • Sourcing techniques need to be adjusted per open position – 13 percent
  • Fewer recruiters due to the recession has made it difficult to go through applications – 10 percent
  • Didn’t check references – 9 percent
  • Lack of strong employment brand – 8 percent

In addition, one in four employers – 26 percent – stated they weren’t sure why they made a bad hire and said sometimes you just make a mistake. The survey also found the effects of a bad hire added up in a variety ways including:

  • Less productivity – 39 percent
  • Lost time to recruit and train another worker – 39 percent
  • Cost to recruit and train another worker – 35 percent
  • Employee morale negatively affected – 33 percent
  • Negative impact on clients – 19 percent
  • Fewer sales – 11 percent
  • Legal issues – 9 percent

The survey was conducted online within the U.S. by Harris Interactive© on behalf of CareerBuilder among 2,494 hiring managers and human resource professionals that were employed full-time between August 13 and September 6, 2012.

Conducting due diligence background checks on new hires is critical for employers. Just one bad hire can lead to litigation, fraud, embezzlement, workplace violence and a host of other problems. Employment Screening Resources (ESR) – ‘The Background Check Authority’ – is accredited by the National Association of Professional Background Screeners (NAPBS). For information about background check solutions from ESR, visit or call toll free 888.999.4474.


About Employment Screening Resources (ESR):

Founded by safe hiring expert Attorney Les Rosen in 1997, Employment Screening Resources (ESR) – ‘The Background Check AuthoritySM’– provides accurate and actionable information that empowers employers to make informed hiring decisions for the benefit of their organizations, employees, and the public. CEO Rosen literally wrote the book on background checks with “The Safe Hiring Manual” and ESR is accredited by The National Association of Professional Background Screeners (NAPBS), a distinction held by a small percent of screening firms. Employers choosing ESR know they have selected an agency meeting the highest industry standards. To learn more about ESR, visit or call toll free 888.999.4474.

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The Employment Screening Resources (ESR) News blog – ESR News – provides employment screening information for employers, recruiters, and jobseekers on a variety of topics including credit reports, criminal records, data privacy, discrimination, E-Verify, jobs reports, legal updates, negligent hiring, workplace violence, and use of search engines and social network sites for background checks. For more information about ESR News or to send comments or questions, please email ESR News Editor Thomas Ahearn at To subscribe to the ESR News Blog Feed, visit To subscribe to the complimentary ESRcheck Report monthly newsletter, please visit