## The cost of a bad hire
The U.S. Department of Labor estimates a bad hire costs at least 30% of the employee's first-year salary. For senior roles, the Society for Human Resource Management (SHRM) puts the figure at **up to 200%** when you factor in lost productivity, team disruption, and re-recruiting costs.
For a $100,000 hire, that's $30,000–$200,000 at risk. Pre-hire assessments typically cost $15–$80 per candidate. The math is straightforward.
## Three ways assessments generate ROI
### 1. Reduced mis-hires
Assessments add a validated data point to your hiring decision. Companies using structured assessments report **24% lower first-year turnover** (Aberdeen Group). If you hire 50 people per year and reduce turnover by even 5 hires, the savings dwarf the assessment cost.
### 2. Faster time-to-hire
Assessments front-load evaluation. Instead of five interview rounds to figure out whether someone can do the job, you start the conversation with data. Evalon customers report a **35% reduction in time-to-hire**, which means open roles get filled faster and revenue loss from vacant positions decreases.
### 3. Better quality of hire
When you measure candidates on job-relevant skills rather than gut feel, you hire people who perform better. Evalon's internal analysis shows that candidates scoring in the top quartile of our assessments are **1.8x more likely** to be rated "exceeds expectations" at their six-month review.
## How to calculate your assessment ROI
Here's a simple framework:
**Annual assessment cost** = (candidates assessed × cost per assessment)
**Annual savings** = (mis-hires avoided × average cost per mis-hire) + (days saved per hire × cost of vacancy per day × hires per year)
**ROI** = (savings - cost) / cost × 100
For most mid-market companies hiring 20–100 people per year, the ROI ranges from **500% to 2,000%**.
## Evalon's pricing in context
Our Starter plan is free—2 active projects, 20 invites per month, all six assessment banks included. For growing teams, the Pro plan at $59/month supports 10 projects and 250 invites. At scale, Enterprise offers unlimited usage with custom assessments and SSO.
Every plan includes the same validated assessments. You never pay more for quality—just for volume.
## Making the business case
When presenting to leadership, frame assessments as *risk reduction*, not as a line item. A single avoided bad hire pays for years of assessment costs. And unlike most HR investments, the ROI is directly measurable.