A bad hire doesn’t send one bill. It sends three, and they arrive on different dates.
First comes the cost of replacing the person. Then a short crew. Then rework on the job they got wrong. Here’s what each one costs, with numbers you can check.
Cost 1: Replacement Can Run Up to Twice the Salary
Gallup estimates that replacing an individual employee costs between one-half and two times their annual salary. Gallup calls that a conservative estimate. The range covers all industries, not just construction.
Run it on a real trade. BLS puts the median pay for electricians at $63,190 as of May 2025. At that wage, one replacement lands between about $31,600 and $126,400. That’s an illustration, not a quote. Your number depends on the role, the license level, and how long the seat stays empty.
That last part is the catch. In AGC’s 2026 survey, 81% of firms with electrician openings said those roles were hard to fill. Another 77% said the same about HVAC technicians. A seat that is hard to fill stays empty longer, and every empty week adds to the bill.
Cost 2: Crew Shortages from Unreliable Hires
A reliable crew is a plan. A short crew is a problem. When a new hire doesn’t show up, the work doesn’t slow by one person. It slips for everyone waiting on that scope.
AGC and NCCER’s 2026 workforce survey shows how common this is. 42% of firms name new hires who fail to show up or quit shortly after starting as a reason positions are hard to fill. And 83% report at least some turnover among new field employees in their first 90 days. Firms most often blame a mismatch between what workers expect and what construction work is really like.
The schedule pays for it. 42% of firms say worker shortages, their own or their subcontractors’, have delayed projects. That makes shortages the most common cause of delay in the survey. Only 26% of firms reported no significant project delays.
Cost 3: Rework from Poor Execution
Rework is what it costs to do the same job twice. Research drawing on 359 projects in the Construction Industry Institute database found that direct rework costs alone often tally to 5% of total construction cost. That finding comes from the ASCE Journal of Construction Engineering and Management. On a $2 million scope, 5% is $100,000. Again, that’s an illustration.
Rework has many sources, including design errors and owner changes. Workmanship is one of them. Reported quality failure costs vary widely, from less than 1% to more than 20% of contract value, depending on how they’re counted.
Skills gaps feed the workmanship part. Half of the firms in AGC’s 2026 survey say available candidates lack the skills, certificates, or licenses the job needs. A hire who can’t do what the resume claims doesn’t just cost a paycheck. They cost a second visit to fix the work, and a delay while it happens.
Adding Up the Three Costs
Here are the three benchmarks side by side.
| Cost | Benchmark | Source |
| Replacement | One-half to two times annual salary | Gallup |
| Crew shortages | 42% of firms cite no-shows or quick quits. 42% report shortage-driven project delays. | AGC and NCCER, 2026 |
| Rework | Direct rework averages about 5% of total construction cost. | ASCE Journal of Construction Engineering and Management |
These costs overlap, and they vary by job. But the electrician example alone can reach $31,600 to $126,400 before a single day of delay or rework. That is the cost of making a permanent commitment before you’ve seen the work.
How Temp-to-Hire Caps Each Cost
Temp-to-hire doesn’t make a bad fit disappear. It limits how much a bad fit can cost you.
- Replacement. You decide before payroll and benefits become permanent, so a miss ends as an assignment, not a separation.
- Reliability. Attendance shows up in the first weeks, before you convert anyone.
- Rework. You see the work on your own site. Your partner also verifies credentials before placement.
For how to run the trial itself, see TradeCorp’s guide to temp-to-hire for skilled trades.
Cut the Cost of Your Next Hire
TradeCorp places skilled tradespeople through local branch offices, with national dispatch when a project needs more. Its temp-to-hire model lets real on-the-job performance drive the call. Start with your local TradeCorp office. Or connect with our national accounts team to build a temp-to-hire plan for your next hire.
Frequently Asked Questions
What Does a Bad Hire Cost a Contractor?
A bad hire costs a contractor in three places: replacement, crew shortages, and rework. Gallup puts replacement alone at one-half to two times annual salary. The other two depend on the job, but AGC and ASCE research each give a benchmark.
How Much Does It Cost to Replace an Electrician?
Replacing an electrician at the BLS median wage of $63,190 could cost roughly $31,600 to $126,400, applying Gallup’s one-half to two times range. That is an illustration. The real figure depends on the role, the license level, and how long the seat sits empty.
How Common Is It for New Construction Hires to Quit or Not Show Up?
It is common. In AGC and NCCER’s 2026 survey, 42% of firms named new hires who fail to show up or quit shortly after starting as a reason positions are hard to fill. And 83% reported at least some turnover among new field employees in their first 90 days.
How Much Does Rework Cost on a Construction Project?
Direct rework costs often tally to about 5% of total construction cost, according to ASCE research on 359 projects. Reported quality failure costs range from less than 1% to more than 20% of contract value, depending on how they are counted.
Does Temp-to-Hire Reduce These Costs?
Temp-to-hire reduces your exposure to each cost by letting you see attendance and skill before you commit. It doesn’t erase the cost of an assignment that ends early. That cost is usually much smaller than a permanent hire that fails.
