A third of employers have spent over €10,000 correcting a bad recruitment decision.
A new IrishJobs.ie survey reveals almost two-thirds of businesses have suffered from a bad hire in the last 12 months.
They experienced a loss of revenue as well as reduced productivity and poor team morale.
"A positive work culture boosts productivity, but it must be carefully guarded and cultivated," said Orla Moran, general manager of IrishJobs.ie.
Solutions cited by employers include investment in training or professional development or movement to a different department; however, 47% of employers have decided to let the person go.
A common cause of bad hires is relying on referrals from friends or colleagues: 22% of employers cited this as the source of their mistake.
"Understandably, people place a high value on the recommendation of someone they respect," said Ms Moran.
"But, unless they’ve worked closely with the person in question, they won’t have great insight into whether they fit the culture of your organisation."