The True Cost of a Bad Hire
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I constantly get told, “We can’t use MedTech recruiters, it is just too expensive.” Looking at this from a different perspective why wouldn’t you pay a recruitment fee when the cost of a bad hire is astronomically higher?
Don’t believe me…. Let’s break down the true cost using a £60k Territory Manager role within MedTech and Life Sciences, with a £1M–£2M sales target as an example.
1. Lost MedTech Sales Revenue – £200,000 to £800,000
A poor hire can miss their target by 20% to 40%, resulting in hundreds of thousands of pounds in lost revenue. That’s not just a bad quarter—it’s a major setback for your business.
2. Wasted Training and Onboarding Costs – £5,000 to £15,000 (Far more with some of our clients!)
MedTech Training and onboarding aren’t free. Between formal courses, travel, and managerial time, the costs pile up fast. With the wrong hire, that investment vanishes into thin air.
3. Damaged Customer Relationships – £50,000 to £300,000
Clients expect reliability. Poor account management can mean lost contracts, customer churn, and permanent damage to your reputation. How much are your customer relationships worth to you?
4. Replacement Costs – £12,000 to £15,000
Replacing a poor performer isn’t cheap. If you aim for quality over quick fixes, you’ll pay a recruitment fee—but that’s nothing compared to the cost of ongoing underperformance.
5. Vacancy and Opportunity Costs – £15,000+
Every month without a high-performing Territory Manager means missed opportunities. If it takes you 2–3 months to hire, you could be facing £15,000+ in lost management time and a territory in limbo.
The Shocking Reality: £354,000 to £1,235,000+
That’s the real cost of a poor hire when you factor in lost revenue, broken customer relationships, and replacement time.
Still Think Recruitment Is Expensive?
It’s a drop in the ocean compared to the cost of the wrong hire. Investing in the right person now will save you a fortune down the road.
If this has shocked you or made you think that partnering with a specialist exec search provider is actually ESSENTIAL – Get in touch with one of our experienced team today!
You can call us at 01423 813 450 or email us at [email protected]
Or you can peruse the rest of our Med Tech jobs here!
About the Author
DAVID THOMAS
MedTech and Life Sciences Director
I’m David, I head up the MedTech and Life Science division here at Prospect Health. I have worked in recruitment since 2007, specifically in the Medical Tech & Life Science sector since 2010. I feel incredibly lucky to work in such a fascinating sector, where our clients provide cutting edge life influencing products that improve and often save people’s lives on a daily basis!