---
title: "Cost of Bad Hiring Decisions Runs High"
type: "Article"
date: "2020-02-05"
updated: "2026-10-20"
description: "A Harvard Business Review pointed out that as much as “80% of employee turnover is due to bad hiring decisions”. The article said “It can cost on average one-third of a new hire’s annual salary to replace him or her and those costs increase the higher up in the organization the turnover occurs. In some cases, it [...]"
url: "https://one-international.performia.workers.dev/en-au/learn/cost-of-bad-hiring-decisions-runs-high"
canonical: "https://one-international.performia.workers.dev/en-au/learn/cost-of-bad-hiring-decisions-runs-high"
markdown_url: "https://one-international.performia.workers.dev/en-au/learn/cost-of-bad-hiring-decisions-runs-high.md"
site: "Performia"
publisher: "Performia (Performia International AB)"
contact: "info@performia.com.au"
language: "en-AU"
author: "Negar Riazati, CEO, Australia & China"
reading_time_minutes: 1
---

# Cost of Bad Hiring Decisions Runs High

*Article · 5 February 2020 · 1 min read*

> A Harvard Business Review pointed out that as much as “80% of employee turnover is due to bad hiring decisions”. The article said “It can cost on average one-third of a new hire’s annual salary to replace him or her and those costs increase the higher up in the organization the turnover occurs. In some cases, it [...]

A Harvard Business Review pointed out that as much as “80% of employee turnover is due to bad hiring decisions”.

The [article](https://performia.ontraport.net/c/s/6G3/P/6/ny/P/6iCPXM/zG7ASS00iK/P/P/P) said “It can cost on average one-third of a new hire’s annual salary to replace him or her and those costs increase the higher up in the organization the turnover occurs. In some cases, it can total in the millions of dollars if that person is the CEO.”

**What is your strategy?**

This is one of the reasons at Performia we are your partner in your [**Hiring** **Strategy**](https://performia.ontraport.net/c/s/6G3/P/s/n2/P/6iCPXM/z4qsBaY0rv/P/P/P). Our only interest is ensuring you attract, and spend your time only with those who have the highest, and right potential to add value.

Every week, we partner with our clients through the Performia hiring strategy tools, and in the process screen out hundreds of candidates. At the same time, and the part that we get very excited about is that we enable the ability to screen IN some very productive people who unfortunately get passed over by other companies, but are actually extremely effective and right for the role being advertised.

**The trick is, how do you know who is who and what is your strategy?**

Your hiring and screening strategy; the strategy for how people are selected is crucial for your business expansion. And even before that, your strategy for how to communicate your opportunity will play a significant role in targetting the correctly motivated people.

Make sure you [watch this short tutorial](https://performia.ontraport.net/c/s/6G3/P/v/n8/P/6iCPXM/vdS8Pshulg/P/P/P)of Performia CEO Gareth Jekel discussing the type of hiring strategy you need to have.

For more information on how you can have this hiring strategy, please contact the Performia team.

Thanks for watching and I look forward to your feedback.

## Related articles

- [Never make the wrong hiring decision again](https://one-international.performia.workers.dev/en-au/learn/the-productivity-curve.md) — Article, 2026-10-16
- [One heavy weight can hold your whole company down](https://one-international.performia.workers.dev/en-au/learn/helium-and-sand.md) — Article, 2026-10-15

## How to cite

Performia (Performia International AB). “Cost of Bad Hiring Decisions Runs High”. Performia, 2020-02-05. https://one-international.performia.workers.dev/en-au/learn/cost-of-bad-hiring-decisions-runs-high (accessed <date>).

## Company & contact

- **Company:** Performia — legal entity Performia International AB
- **Address:** 2/162 Albert Road, 3205 South Melbourne
- **General enquiries:** [info@performia.com.au](mailto:info@performia.com.au)
- **Phone:** 1800 603 023
- **About:** Makes you build and manage teams more successfully.

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