
The High Cost of a Bad Hire
Hiring the wrong executive can have ripple effects across your organization, impacting morale, momentum, and your bottom line.
Turnover costs are staggering: Replacing a C-level executive can cost up to 213% of their annual salary. For a $200,000 role, that’s more than $400,000 in direct and indirect expenses. SHRM reports that turnover at this level often exceeds three to four times the salary, particularly for senior and strategic roles.
Productivity loss is widespread: U.S. businesses lose an estimated $1.8 trillion annually due to productivity lost from turnover.
Leadership misalignment is costly: In a 2024 survey, 44% of teams cited misalignment as a key workflow issue—up significantly from the previous year. Misalignment leads to disengagement, with 68% of low-alignment companies reporting poor employee engagement.
Strategic drift can derail growth: Only 28% of executives and middle managers could accurately list their company’s strategic priorities, contributing to execution gaps and missed outcomes.
In contrast, highly aligned organizations grow 58% faster and are 72% more profitable than their misaligned counterparts.