The Real Cost of a Bad Hire (Told by Someone Who’s Lived It)

Most founders know that a bad hire is expensive, but only a few realize how much damage it actually causes. 

It’s not just about salary. 

It’s about lost time, missed opportunities, and team disruption.

My own hard lesson

A few years ago, I thought I’d made a great hire. Smart guy. Solid résumé. Interviewed well. Said all the right things.

Three months later, I realized my mistake.

He wasn’t terrible, but he wasn’t great. And “not terrible” is the silent killer of companies.

We paid him $9,500/month. But the true bill was much higher:

• Deadlines slipped.
• Our best people were babysitting him instead of driving projects forward.
• I was spending late nights cleaning up his mistakes.

By the time we let him go (6 months later), the opportunity cost wasn’t $50K. It was closer to $100K, in delayed launches, lost clients, and momentum we never got back.

The very next week, we hired an offshore A-player for the same role, with a salary near to $4k/mo. She delivered in her first month, built systems that still run today, and raised the bar for everyone around her.

That’s when it hit me: 

The cost of a bad hire isn’t salary

It’s the time and opportunities you’ll never get back.

The broader trend

This isn’t unique to me.

“Good enough” hires are far more common than true top performers, and the difference shows up fast in business performance.

We’ve seen this with clients, too. 

For instance, one dental group had a string of mediocre marketing hires who churned quickly and left campaigns in disarray. As a result, their Customer Acquisition Cost (CAC) was spiraling.

Here’s what happened next: 

Pavago replaced their team with offshore A-players in PPC and SEO. Within 90 days, CAC dropped 40% and patient sign-ups hit record highs. Oh, and they saved 50% on salaries too.

How to avoid the trap

• Hire slow, fire fast. Mediocre performance compounds over time.
• Measure output, not effort. Look at KPIs within 30–60 days.
• Recruit globally. Limiting your search to one city dramatically shrinks your talent pool.

At Pavago, we recruit worldwide, filter brutally, and guarantee replacements for life – because the true cost of hiring isn’t paying someone $70K a year. 

It’s paying the wrong person and watching your growth stall.

Every CEO remembers their best hire.

Every CEO regrets their worst.

The only question is: how many more quarters will you gamble on “good enough”?

And if you’re ready to change that, you know what to do.

👉🏼 Book a call with Pavago