THE TRUE COST OF A BAD HIRE IS $80,000
That’s the estimated cost of hiring a toxic employee, according to a recent survey. Other research puts the figure lower — closer to $25,000 — but the conclusion is the same - a toxic hire is expensive.
In fact, Harvard research shows the cost of hiring a toxic team member can be more than double the added value of hiring a so-called “superstar” — someone in the top one per cent of performers. And the real damage goes well beyond productivity or rehiring costs.
Toxic behaviour spreads. It erodes trust, lowers morale, drives good people out, and can damage relationships with clients, stakeholders and communities.
At Social Impact Careers, we see this play out time and time again. Which is why we encourage organisations to be just as rigorous about how someone behaves as they are about what’s on their CV.
Read on for four practical ways to reduce the risk of hiring a toxic team member.
1. Interview for civility
Civility matters. How someone treats others — especially under pressure — tells you a lot about how they’ll show up at work.
During interviews, look for genuine courtesy, accountability and respect. The best way to do this is through behavioural questions, not hypotheticals.
Ask candidates to describe real situations, such as:
Don’t settle for a single example. Ask for more than one. Patterns matter. Also pay attention to the small things. How do they treat your receptionist or EA? Are they punctual? Do they speak respectfully about former employers? Do they take responsibility for past outcomes — or blame others? These signals are rarely accidental.
2. Involve your team
Where possible, involve others in the process. A casual team lunch or informal catch-up can reveal far more about alignment than another formal interview. It gives candidates insight into your culture — and gives you a chance to see how they engage when the power dynamic shifts. If someone struggles to show respect, curiosity or humility in these settings, it’s a useful early warning.
Just as importantly, it allows your team to feel heard — and invested — in the decision.
3. Go deeper with reference checks
Reference checks shouldn’t be a box-ticking exercise. Start by clearly explaining your organisation’s values to the referee, then ask for specific behavioural examples that demonstrate (or contradict) those values.
Useful questions include:
Where appropriate, and with the candidate’s permission, consider speaking to people outside the formal referee list — such as board members, coaches, or academic supervisors — who’ve seen the candidate operate in different contexts.
4. Check your own standards
Finally, look inward. It’s hard to identify respectful, civil behaviour in others if it’s not consistently modelled internally. Research from Google shows that a candidate’s interaction with interviewers is the single most-mentioned factor in their recruitment feedback — even more than role content or benefits.
How you treat candidates reflects who you are as an organisation. If you want civility, accountability and respect, your recruitment process must demonstrate it at every stage. Skills and experience matter. But they rarely outweigh the long-term cost of toxic behaviour.
Do the work upfront — and you give yourself the best chance of protecting your people, your culture, and your organisation’s reputation.
About the author
Lisa Morell is a trusted advisor, founder and people strategist with deep experience helping organisations make better hiring decisions — especially where the cost of a wrong hire is high.
Lisa has worked closely with boards, executives and purpose-driven organisations to design recruitment processes that go beyond CVs and gut instinct, focusing instead on values alignment, cultural fit and real-world capability. She’s known for her practical, no-nonsense approach to interviewing — and for asking the questions others often don’t.
Lisa brings clarity, rigour and humanity to the hiring process, helping organisations find people who don’t just look good on paper, but genuinely belong in the role.
Get in touch
If you’d like support with recruitment strategy, executive hiring, interview design or related questions, Lisa would love to hear from you.
Lisa Morell
Director, Social Impact Careers
lisa@socialimpactcareers.com.au
0431 874 400
* This piece draws on research originally published by Harvard Business Review.
In fact, Harvard research shows the cost of hiring a toxic team member can be more than double the added value of hiring a so-called “superstar” — someone in the top one per cent of performers. And the real damage goes well beyond productivity or rehiring costs.
Toxic behaviour spreads. It erodes trust, lowers morale, drives good people out, and can damage relationships with clients, stakeholders and communities.
At Social Impact Careers, we see this play out time and time again. Which is why we encourage organisations to be just as rigorous about how someone behaves as they are about what’s on their CV.
Read on for four practical ways to reduce the risk of hiring a toxic team member.
1. Interview for civility
Civility matters. How someone treats others — especially under pressure — tells you a lot about how they’ll show up at work.
During interviews, look for genuine courtesy, accountability and respect. The best way to do this is through behavioural questions, not hypotheticals.
Ask candidates to describe real situations, such as:
- A time they had a conflict at work and how they handled it
- What a former manager or colleague would say about working with them
- How they’ve supported or managed others through difficult moments
Don’t settle for a single example. Ask for more than one. Patterns matter. Also pay attention to the small things. How do they treat your receptionist or EA? Are they punctual? Do they speak respectfully about former employers? Do they take responsibility for past outcomes — or blame others? These signals are rarely accidental.
2. Involve your team
Where possible, involve others in the process. A casual team lunch or informal catch-up can reveal far more about alignment than another formal interview. It gives candidates insight into your culture — and gives you a chance to see how they engage when the power dynamic shifts. If someone struggles to show respect, curiosity or humility in these settings, it’s a useful early warning.
Just as importantly, it allows your team to feel heard — and invested — in the decision.
3. Go deeper with reference checks
Reference checks shouldn’t be a box-ticking exercise. Start by clearly explaining your organisation’s values to the referee, then ask for specific behavioural examples that demonstrate (or contradict) those values.
Useful questions include:
- What’s it like working with them day to day?
- How do they handle collaboration and feedback?
- How do they respond to authority or challenge?
- Would you rehire them?
Where appropriate, and with the candidate’s permission, consider speaking to people outside the formal referee list — such as board members, coaches, or academic supervisors — who’ve seen the candidate operate in different contexts.
4. Check your own standards
Finally, look inward. It’s hard to identify respectful, civil behaviour in others if it’s not consistently modelled internally. Research from Google shows that a candidate’s interaction with interviewers is the single most-mentioned factor in their recruitment feedback — even more than role content or benefits.
How you treat candidates reflects who you are as an organisation. If you want civility, accountability and respect, your recruitment process must demonstrate it at every stage. Skills and experience matter. But they rarely outweigh the long-term cost of toxic behaviour.
Do the work upfront — and you give yourself the best chance of protecting your people, your culture, and your organisation’s reputation.
About the author
Lisa Morell is a trusted advisor, founder and people strategist with deep experience helping organisations make better hiring decisions — especially where the cost of a wrong hire is high.
Lisa has worked closely with boards, executives and purpose-driven organisations to design recruitment processes that go beyond CVs and gut instinct, focusing instead on values alignment, cultural fit and real-world capability. She’s known for her practical, no-nonsense approach to interviewing — and for asking the questions others often don’t.
Lisa brings clarity, rigour and humanity to the hiring process, helping organisations find people who don’t just look good on paper, but genuinely belong in the role.
Get in touch
If you’d like support with recruitment strategy, executive hiring, interview design or related questions, Lisa would love to hear from you.
Lisa Morell
Director, Social Impact Careers
lisa@socialimpactcareers.com.au
0431 874 400
* This piece draws on research originally published by Harvard Business Review.
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