Cost of ‘Bad’ Hire

TSG Value Proposition & Performance Metrics

Quality, Speed and Eliminate ‘Bad’ Hires


The Incredible Cost of ‘Bad’ Hire

  • 150-300%+ of annual salary + 35%+ lower performance and productivity X # of years times number of employees
  • Business Impacts Lost productivity, reduced revenue, lost innovation, customer impacts, error rates, slower time-to-market, loss of competitive advantage
  • Increased Management Time and Effort More management time, weak hires must be replaced, performance management and termination costs
  • Hiring Manager’s Image is Impacted Being branded as a ‘C’ manager, loss of your colleagues’ respect, reduced bonuses, impacts on promote ability
  • People-Management and Team Impacts Resentment by coworkers, lost leadership and promotional opportunities, increased turnover, reduced internal transfers, opportunity costs, negative impacts on future hiring, legal issues increase, hiring costs, lost agility, longer ramp-up time, reduce learning, a loss of competitive intelligence, lower technology competence, more training required, loss of diversity, more temporaries required


Case Study:

Client hired TSG and another firm to benchmark and compare services & results

Non-TSG Contingency Hire ($7,500 fee)
2017 Revenue – $1.528M
2018 Revenue – $1.027M
($500K) loss; < 12 mo. tenure; terminated and refill
TSG Retained Hire ($30K fee)
2017 Revenue – $832K
2018 Revenue – $1.9M
> $1M gain; Rep of Year
TSG Retained Hire ($30K fee)
2017 Revenue – $2.4M
2018 Revenue – $3.5M
> $1.1M gain



TSG Value Proposition & Performance Metrics

Would you invest $22,500 to realize a $1M+ gain and build your organization for future succession planning?


Case Study:

Client hired TSG to ‘Clean Up’ after a Top 5 Firm Failed

Non-TSG Retained C level Executive Hire ($183,500 total fee paid)

On paper, extremely Qualified, Pedigreed; Professional Success

Extremely Charismatic; Great Interviewer; had ‘Powerful Friends’ as References

FAILURE – Never physically engaged (wasn’t driven); Unknown to company pre-hire, was having significant marital, extra-marital with employee(s) and other issues that impacted engagement, decisions and business outcomes – Exercised Employment Agreement Termination with Severance after 14 months (company forced)

TSG Retained to ‘Clean Up’ Above Hire ($124,575 total fee paid)

Seven (7) qualified, prospective candidates within 4 weeks or less; Client narrowed to top 3; Could have hired all 3; Hired #1 and extended offer to 2nd candidate (turned down as not a level desired)

SUCCESS – Employee engagement at all time high; mid-double digit revenue and EBITA growth globally last 2 years exceeding performance plan; Stock value appreciation of over 57%; In process of acquisition conversations for $B’s additional valuation