How Much Does a Bad Tech Hire Cost in Quebec?

Hiring the wrong person for a technical position is one of the most expensive mistakes a company can make. In Canada, the total cost of replacing an employee ranges between 50% and 200% of the position's annual salary (source: Kenova). For a senior developer at $130,000, that represents a loss of $65,000 to $260,000. Here's the complete anatomy of these costs and how to prevent them.

Direct Costs of a Bad Hire

Recruitment Costs

The replacement process involves concrete expenses:

• Job postings: $500 to $2,000 per platform (Indeed, LinkedIn, specialized sites)
• Internal recruiter time: 20 to 40 hours per process, or $2,000 to $5,000 in salary costs
• Reference checks and technical tests: $500 to $1,500
• Agency fees (if applicable): 15% to 25% of annual salary

Lost Training Costs

The training investment in the first employee is entirely lost:

• Technical onboarding: 2 to 4 weeks of reduced productivity for the new employee and their trainers
• Tool access, software licenses, equipment: $2,000 to $5,000
• Knowledge transfer by colleagues: non-billable time

Hidden Costs: The Tip of the Iceberg

Collective Productivity Loss

An ill-suited employee doesn't just produce less: they slow down the entire team. Code reviews take longer, bugs increase, and colleagues compensate for shortcomings. This collective productivity loss is estimated at 1.5 to 2 times the position's annual salary according to Oxford Economics.

Impact on Team Morale

When a colleague underperforms or leaves quickly, team morale suffers. Remaining developers must absorb additional workload, increasing burnout risk and cascade departures.

Project Delays

A position vacant for 2 to 3 months (average replacement time in Quebec tech) delays deliverables, pushes back production releases, and can impact revenue. For a startup, this could mean missing a critical market window.

Employer Brand Damage

An employee who leaves after a few months will likely share their experience on Glassdoor or within their network. After a bad recruitment experience, 60% of candidates say they have a degraded image of the company (source: HelloWorkplace).

Why Tech Recruitments Fail

The most frequent causes of recruitment failure in technology:

1. Insufficient technical evaluation: an impressive resume doesn't guarantee competence. Without rigorous technical testing, gaps only reveal themselves after hiring
2. Poor cultural fit: technical skills are necessary but not sufficient. A brilliant developer who doesn't integrate with the team will create friction
3. Imprecise job description: poorly defined expectations lead to poorly targeted applications and mutual disappointment
4. Process too fast: under shortage pressure, some companies reduce evaluation steps and hire too quickly
5. Insufficient reference checking: not contacting references is a time savings that costs dearly

How to Prevent Bad Hires

1. Define the Position Precisely

Before posting, align the manager, technical team, and HR on essential vs. nice-to-have skills, the actual experience level needed, and non-negotiable cultural criteria.

2. Structure Technical Evaluation

Use a combination of objective assessments:

• Calibrated technical test (CoderPad, HackerRank) adapted to the actual role
• Technical interview with practical scenarios
• Code review or discussion about a past project

3. Assess Cultural Fit

Include a team meeting in the process. Behavioral interviews (STAR method) reveal communication, conflict management, and collaboration style.

4. Partner with a Specialist

A tech recruitment agency like VALO pre-evaluates candidates technically and culturally before presenting them. Our 18% fee includes a 3-month replacement guarantee: if the recruitment fails, we start over at no additional cost. It's an investment that protects against much larger losses.

A bad hire is never just "bad luck": it's a symptom of a process that needs improvement. Investing in a rigorous process and a specialized partner is always more profitable than managing the consequences of failure.

Read also: Why Use a Permanent Tech Recruitment Agency | Tech Labor Shortage in Quebec: 8 Solutions