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The Center for Creative Management has been helping organizations and individuals realize their maximum potential since 1997. We help your organization select the right people for each position, and help managers learn how to take care of their staff so that your employees will want to stay with your organization and develop into top performers.

What is the cost of a bad hire?

Whether an employee leaves of their own accord or because of being fired, the cost is high. But what most employers don't factor in is just how much it costs when they have a mediocre to poor performer. There is a loss of productivity, morale, and quite possibly clients or customers. The average cost for employee turnover depends on the position filled and the salary paid for it, but typically ranges between 1 and 1.5 times the position's annual pay. 1,2

To estimate what it costs when your organization has just one poor performer, try our free Cost of a Bad Hire Calculation. We think you will see that the cost savings realized from using the latest in employee selection technology can be enormous.


1 O'Connell, M. & Kung, M. C. (2007).  The cost of employee turnover.   Industrial Management, 49 (1), 14-19
2 Schlesinger, L. A. &. Heskett, J. L. (1991).  Breaking the cycle of failure in services.   MIT Sloan Management Review, 33 (3), 17-28

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Suellen Meyer Koppel, Ph.D.
(314) 537-1757

To find out exactly what it costs when your organization loses one
employee, try our free
Cost of a Bad Hire Calculation.

The Seven Biggest
Mistakes Employers
Make When Hiring

This report, free with your
registration, can alert you to the
key mistakes employers make
when hiring and can be the first
step in dramatically improving
your hiring process.

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How productive are your employees?

The Journal of Applied Psychology measured and compared the productivity of employees. Productivity varied by complexity of work. Employees in the most complex jobs (e.g. many jobs that require a bachelor’s degree) showed the biggest differences. Top performers in highly complex jobs were 125% more productive than their average counterparts. The difference in productivity between top and low performers in these types of jobs was greater than 1,200%.