Hiring the right people is crucial in any industry, but in freight forwarding, logistics, transport, warehousing, and supply chain management, the stakes are even higher. A poor hiring decision can lead to financial losses, operational disruptions, and even reputational damage – all of which can set a business back significantly.
At SRS, we see firsthand how the right hire can transform a business and how the wrong one can create challenges that go beyond just financial cost. But what exactly does a bad hire cost, and how can you avoid making recruitment mistakes?
The True Cost of a Bad Hire
Financial Implications
A poor hiring decision can be costly. According to the Recruitment & Employment Confederation (REC), a bad hire at the mid-management level with a salary of £42,000 can cost a business more than £132,000. These costs encompass recruitment expenses, training, lost productivity, potential damage to client relationships and increased staff turnover.
Operational Disruptions
In transport and logistics, precision and efficiency are non-negotiable. An underqualified transport planner might miscalculate routes, causing delivery delays and increased fuel costs. A compliance manager lacking industry knowledge could fail to meet DVSA regulations, leading to potential fines or license suspensions.
A single wrong hire can create a domino effect of missed deadlines, lost revenue, and regulatory breaches – issues no logistics business can afford.
Impact on Team Morale
A bad hire doesn’t just affect operations – it impacts the entire team. When colleagues have to pick up the slack, it leads to frustration and disengagement. In the transport sector, where teams work under high pressure, one ineffective team member can drag down productivity for everyone.
According to research by Oxford Economics, replacing an employee costs UK businesses £30,614 per worker, factoring in lost output and rehiring costs.
How to Avoid Recruitment Mistakes
The good news? With the right recruitment strategy, businesses can avoid costly mistakes and ensure they hire people who truly fit the role and culture.
1. Define the Role Clearly
A vague or overly broad job description attracts the wrong candidates. Ensure job descriptions are precise, realistic, and aligned with the skills and qualifications truly needed for success.
2. Prioritise Industry-Specific Experience
In transport, logistics, and supply chain recruitment, ensuring candidates have the right level of experience is essential. Compliance-heavy roles such as HGV drivers, transport planners, and fleet managers require verified certifications and operational knowledge. Meanwhile, leadership roles demand strategic oversight and industry-specific expertise to optimise efficiency and regulatory compliance.
By aligning skills, certifications, and industry knowledge with business needs, companies can mitigate hiring risks and ensure long-term success.
3. Strengthen Your Recruitment Process
To minimise hiring risks, businesses should:
✔ Conduct structured interviews focused on practical skills and problem-solving
✔ Use scenario-based assessments to gauge decision-making and industry knowledge
✔ Ensure compliance and qualification checks are thoroughly completed
4. Consider Working with a Specialist Recruitment Partner
Recruitment can be time-consuming and complex, and making the wrong choice can be costly. Working with an industry-specialist recruiter can help businesses:
✔ Access a wider talent pool – Specialist recruiters have pre-vetted, high-quality candidates ready to go.
✔ Save time and reduce hiring risks – A targeted approach ensures the right fit, cutting down hiring cycles.
✔ Navigate industry compliance – Hiring in transport and logistics requires meeting strict regulations.
Minimise Risk & Find the Right Hire with SRS
A bad hire can cost time, money, and business performance, but the right hire can drive growth, efficiency, and success. At SRS, we take the guesswork out of recruitment by matching businesses with top-tier talent in the transport, logistics, supply chain, and warehousing sectors.
🚛 Looking for your next permanent or temporary hire? Let’s get it right the first time. Get in touch with our expert team today.
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📞 0161 513 8121
