The Cost of a Bad Hire in Supply Chain and How to Avoid It

July 28, 2025

How Hiring a Bad Employee Costs You Money

Poor hiring decisions cost companies thousands of dollars every year. A bad hire can ruin relationships with clients, cost you money and negatively impact your company's culture. As one of Perth’s top logistics employment agencies, we have had many clients come to us after making poor hiring decisions. Here are our top tips for making better hiring decisions. 

Losing Clients

If your employees are slacking, lazy or unproductive, you are likely to face setbacks in your work that are hard to come back from. Projects have deadlines, and if your company is consistently not meeting demands, you are going to have unhappy clients. When you lose clients, you’re not only missing out on potential revenue, but you also face the added cost and effort of acquiring new ones.


Reputation Damage

A bad hire can impact the image of your company in the eyes of current clients and may deter future ones. Typically, if someone has had a bad experience, they will either leave a bad review or share their experience with others. This can affect your business's reputation and ability to attract new clients. 


Recruitment Costs 

Hiring new staff isn’t just about offering a salary. From job ads to interviews and onboarding, recruitment comes with hidden costs that can add up quickly. A bad hire can almost double these costs, meaning it is worth spending more time to find the right staff. Here are some of the most common costs during the recruiting process: 


  • Writing the job posting 
  • Posting the job on multiple job search websites
  • Screening resumes
  • Interviewing candidates
  • Background & security checks
  • Drug and alcohol screenings & medical checks
  • Negotiating salaries
  • Waiting for candidates to accept the offer


Simplify the recruitment process by using a specialist recruitment team. Here at IRP, we understand how to identify the right candidate. Whether you need permanent or temporary staff, our team is here to help.


Training Costs

When you hire new staff, you will need to train them. Training can be time-consuming and expensive, especially if they need specific tickets or qualifications. You are going to want to hire reliable candidates to get the best return on your investment. 


A dependable hire will not only absorb training more effectively but also stay longer, reducing turnover and protecting the resources you've committed to their development.


Warning Signs of a Bad Hire

Even with a thorough recruitment process, not every hire will turn out to be the right fit. Identifying potential issues early can help you take action before they impact your team, productivity, or customer relationships. Here are some common warning signs that may indicate you've made a bad hire.


Making the Same Mistakes

A new hire who consistently makes the same mistakes without showing signs of improvement is a clear red flag. This behaviour shows a lack of attention, adaptability, or willingness to learn, key qualities for success in any role.


Frequently Late or Doesn’t Show Up 

A new hire who regularly shows up late or misses work without valid reasons demonstrates a lack of reliability and commitment. Punctuality and consistent attendance are basic expectations in any role.


Complains Frequently to Management or Coworkers

If a new hire is complaining after only being at the company for a short time, you should reflect on whether it’s your company’s culture or your hiring decisions.


While occasional feedback is important, excessive complaining often signals a poor attitude, a lack of adaptability, or difficulty working with others. Productive team members focus on solutions, not just problems.


Clients Complain About Their Attitude

When clients begin to express concerns about an employee's attitude, that is a serious warning sign. Your employees represent your company, and negative interactions will damage your reputation and client relationships. 


How to Avoid Recruitment Mistakes 

Hiring the wrong person can be costly, not only in terms of time and money, but also in morale, productivity, and team dynamics. Fortunately, many common recruitment mistakes can be avoided with the right approach and planning. Here are some key strategies to help you make better hiring decisions and build a stronger team.


Clear Job Descriptions 

One of the most common hiring mistakes is starting the process without a clear understanding of the role’s recruitment needs. Setting clear expectations for the role and the experience required will ensure that they have a thorough understanding of what the role entails.


Clear job descriptions also help the hiring team during the interview process to determine if candidates are a good fit. Upfront clarity ultimately leads to better hiring decisions and employee retention. 


Hire a Recruitment Agency for Logistics

Looking for recruitment solutions for warehousing or the logistics industry? Consider partnering with a logistics recruitment agency. Recruitment agents help to streamline the recruitment process to help you find the best candidates quickly. 


Finding the Right Cultural Fit

While skills and experience are essential, many recruiters overlook the importance of cultural fit. The best employees are those who align with the company’s culture and embrace its values and practices. If your new hire feels connected to their workplace, they’re more likely to stay engaged and less likely to leave. 


Overlooking Internal Talent

Looking to hire logistics or warehouse managers? Often, the right person was right under your nose the whole time. Hiring experienced staff who understand the company culture and operations will save time, reduce onboarding challenges, and ensure a smoother transition into leadership. Internal candidates often bring valuable insights, loyalty, and a proven track record, making them strong, low-risk choices for key management roles.


Your Reliable Recruitment Partner

Logistics and supply chain companies operate in a fast-paced and often dynamic environment. Here at IRP, we are dedicated to helping businesses connect with the best talent. 


Enjoy a streamlined recruitment process. From warehouse recruitment to transport and supply chain hiring, we know what it takes to meet the unique demands of your business. Find top talent. Contact our team of recruitment specialists today!


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