What's the True Cost of a Bad Hire?

Industry estimates put the cost of a bad technical hire at 1.5-2x their annual salary once you account for lost productivity, rework, team morale, and the cost of re-hiring — not just the salary paid.

Where the Cost Actually Comes From

Salary paid for low output over the 3-6 months it typically takes before the problem is clearly identified, rework where code has to be rewritten by someone else, team drag as senior engineers spend time reviewing and correcting instead of building, the opportunity cost of the feature that didn't ship, the cost of starting the search and onboarding process over again, and team morale damage from carrying an underperformer, especially if it takes months to act.

Why It's Worse in Contract/Remote Settings

A bad remote hire is often slower to detect — without daily in-person visibility, it can take longer to notice someone is underperforming, extending the cost window.

How to Reduce the Risk

Proper vetting before the hire, a defined trial period with clear written expectations, and regular check-ins in the first 30 days specifically looking for early warning signs.

Bottom line: A bad hire costs far more than their salary. Investing in proper vetting upfront is cheap insurance against a cost that compounds for months.

Need vetted developers who already use AI tools well? Greatex Services places pre-vetted contract engineers across the US, UK, UAE, and ANZ — onboarded in days, not weeks.

Talk to Greatex Services