Article
When a senior hire does not work out, the number that gets reported to the board is usually salary plus severance. It is the easiest figure to calculate and the least accurate description of what happened. In our experience the visible cost is rarely more than a third of the total.
The rest accumulates quietly. Decisions get deferred while the new leader finds their footing, then revisited when they leave. Strong performers who joined for that leader start taking calls. Roadmaps slip a quarter, and the team learns that leadership changes are something to wait out rather than follow.
Then there is the restart. A replacement search rarely begins the day the departure is announced. There is a period of internal debate about whether the profile was wrong, an interim arrangement, and only then a new process. Six to nine months of organizational drift is a conservative estimate.
None of this argues for hiring more slowly. It argues for validating more thoroughly before the offer, which is why our process front-loads cognitive assessment, structured behavioral interviews, and reference depth, and why every placement carries a 3 to 6-month guarantee.
