The Hidden Cost of a Bad Hire in MSPs

Hiring the wrong person can be one of the costliest mistakes an MSP makes, yet too often, businesses fail to consider the full impact. A poor hiring decision doesn’t just affect the individual, it can drag down entire teams, disrupt workflows, and ultimately impact client satisfaction. The financial burden is significant, with some studies estimating that a bad hire can cost a company as much as ￡30,000, factoring in recruitment costs, lost productivity, and eventual replacement.

But the damage extends beyond finances. A new hire underperforming puts additional strain on their colleagues, who must compensate for their shortcomings. Managers spend disproportionate amounts of time trying to coach and correct, diverting their attention from higher-level strategic work. When bad hires are placed in leadership roles, the consequences can be even more severe: poor direction, team frustration, and, ultimately, a decline in service quality.

One of the biggest risks for MSPs is hiring reactively. Under pressure to fill a vacancy, companies rush the process, making decisions based on immediate needs rather than long-term fit. This often leads to hiring based on technical skills alone while ignoring cultural fit, adaptability, and leadership potential. The impact of a bad hire is magnified in an MSP environment where service desks operate in high-pressure, fast-paced conditions that require both technical competence and strong problem-solving skills.

Build the Right Roadmap

Avoiding hiring mistakes starts with a structured recruitment strategy. This means going beyond CVs and technical tests to assess problem-solving ability, adaptability, and communication skills. Businesses should take the time to understand how candidates will fit into their existing team and what support they need to succeed. Investing in thorough onboarding also plays a crucial role; many hiring failures stem not from the wrong person being hired but from a lack of support once they start.

The MSP world is fast-moving, and sometimes hiring decisions must be made quickly. But speed shouldn’t come at the expense of precision. Evaluating candidates properly, aligning recruitment with long-term business goals, and ensuring that new hires receive proper training can make all the difference. Companies like Start Tech, for instance, recognised their hiring missteps early and revamped their recruitment process to include more in-depth culture-fit assessments. The result? A significantly lower turnover rate and improved team performance.

Bad hires happen but don’t have to be a regular occurrence. By taking a strategic approach to recruitment and investing in employee success from the outset, MSPs can protect themselves from the hidden costs of hiring mistakes and build a stronger, more resilient workforce.

What hiring challenges have you faced in your MSP? Have you experienced the impact of a poor hiring decision, and how did you recover? Hiring smarter ensures long-term team success. Reach out to share your experiences.

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Jane

jane.matthews@wildcatcareers.co.uk