How to spot a bad hire before it’s too late

Hiring is always a gamble, but some gambles are more expensive than others. 

A bad hire can be a waste of salary, as well as a drain on team morale, productivity, and momentum.

A CareerBuilder survey found that 74% of companies admit to hiring the wrong person, with each bad hire costing an average of nearly $15,000. 

The earlier you catch it, the less costly it becomes. Spotting the warning signs in the first 90 days can mean the difference between a manageable reset and a spiralling expense.

In this article, we’ll break down a practical framework you can use to identify, address, and, if necessary, end a bad hire before the damage spreads.

1. Define a bad hire

Not every slow starter is a bad hire. Some people simply need time, structure, or support. 

A bad hire is different. It’s someone who is misaligned in ways that can’t be fixed by onboarding or coaching.

A true bad hire typically shows three or more of these patterns:

• Performance gaps. Consistently missing targets or producing low-quality work despite feedback.
• Cultural misfit. Displaying behaviours that clash with company values or teamwork.
• Low adaptability. Struggling to learn, adjust, or take on feedback.
• Negative impact. Dragging down the energy or productivity of others.

Performance issues can often be solved. A bad hire is about deeper misalignment that training won’t fix.

2. Watch the first 90 days like a hawk

The probation period exists for a reason. Most bad hires reveal themselves early if you know what to look for.

Warning signs include:

• Excuses instead of progress. A pattern of reasons for underperformance, without improvement.
• Resistance to feedback. Getting defensive or dismissive when given coaching.
• Low initiative. Waiting to be told what to do rather than owning outcomes.
• Frustrated teammates. Complaints or visible strain from colleagues working alongside them.

Research from Leadership IQ found that 46% of new hires fail within 18 months, most due to attitude and cultural fit rather than skills.

The first 90 days are your best window to spot and address a bad hire before they embed.

3. Clarify expectations with a role charter

One of the biggest reasons leaders misjudge performance is that expectations aren’t crystal clear. 

If your only guide is a job description, you’re already behind.

A role charter sets out:

• Responsibilities. What the person actually owns day-to-day.
• Decision rights. What they can decide, and where they need alignment.
• Success measures. How impact will be judged.

“The number one driver of employee engagement is whether or not they can answer ‘yes’ to the question: I know what is expected of me at work.” - Gallup

If you haven’t set clear expectations, you can’t fairly judge whether someone is failing.

4. Separate coachable gaps from fatal flaws

Before pulling the trigger on an exit, you need to know whether the issues are fixable.

• Coachable gaps. Skill development, process knowledge, confidence, time management.
• Fatal flaws. Persistent resistance to feedback, lack of integrity, unwillingness to collaborate, or behaviours that erode trust.

A SHRM study found that 95% of hiring professionals say a bad hire impacts team morale, and 80% say it lowers productivity. Those are fatal flaws worth addressing quickly.

“Not every problem is a firing problem. But some problems only get worse the longer you wait.” - Patty McCord, Netflix’s former Chief Talent Officer

5. Act quickly and fairly

Dragging out a bad hire is the most common mistake leaders make. It feels easier to give hires one more month, but each month compounds the cost.

Best practice:

• Give direct feedback early. Don’t sugarcoat issues.
• Document everything. Keep a record of feedback, actions, and results.
• Use probation periods. They exist to protect both sides.
• Exit with dignity. Treat people fairly. A bad hire for you could still thrive elsewhere.

For example, when Zappos offered new hires $2,000 to quit after training, they did it to weed out bad fits as quickly as possible. That clarity saved them far more than it cost.

Quick, fair decisions minimise the damage and also show your team you won’t tolerate dead weight.

Summary

Every company makes hiring mistakes. The difference between a costly one and a manageable one is speed and clarity.

By setting expectations with role charters, monitoring the first 90 days, and separating coachable gaps from fatal flaws, you can catch a bad hire before they become a long-term liability.

Clarity protects your culture, your budget, and your team’s energy. 

Don’t wait for the damage to show. Spot the signs early and act.

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