Insights

What separates a good operations leadership hire from a costly one

By Rob Pegg · July 2026

Hiring · Leadership

A bad hire at mid-manager level costs a UK business around £132,000 by the time you count recruitment, salary, lost productivity and the disruption of starting again, according to the Recruitment & Employment Confederation. At director and board level the number climbs well past that. Having hired, managed and occasionally been the wrong appointment across twenty-five years of running operations, I can tell you the cost is real, and I can tell you it is almost always predictable in hindsight. The uncomfortable truth is that most bad leadership hires were assessed on the wrong things from the start.

Why good-looking hires go wrong

The candidate who fails rarely fails at interview. They usually interview beautifully, which is exactly the problem. The standard process rewards the skills of getting hired, being articulate, well-prepared, confident about past achievements, and those are not the same skills as running an operation on a bad Tuesday. Culture Amp's research makes the scale of the leadership risk concrete: within six months of a leader's departure, the teams directly affected show around 40% higher attrition than teams with no change at the top. Put the wrong leader in and you don't just lose the leader when it fails; you lose the people underneath them.

The four things that actually predict success

Operational substance over narration. Anyone can describe a turnaround. The question is whether they made the decisions or stood near someone who did. Push past the story to the specifics: what did the P&L look like on arrival, what changed month by month, what did they personally decide. Substance survives follow-up questions; narration falls apart on the third "and then what did you do".

Judgement under imperfect information. Operations is a stream of decisions made without the full picture. A strong hire can walk you through a call they got wrong, what they saw, what they missed, what they changed after. A candidate with no such story is either untested or unreflective, and both are expensive.

How they treat the layer below. The best operators talk about their teams as the reason for results; weaker ones talk about their teams as the obstacle they overcame. That tell, listened for carefully, predicts more about retention than any competency framework.

Fit to the operation, not the org chart. A leader who thrived in a mature, well-resourced network can drown in an under-invested one, and the reverse. The role is not the job title; it is the actual operation, its state, its customers, its team. Assessing against the title instead of the reality is how businesses hire someone excellent who then fails, which feels like bad luck and is actually a scoping error.

What this means for how you assess

Interview the operation, not the CV. Build your questions around the specific reality the person will inherit: the shift pattern, the customers, the numbers, the team they'll walk into on day one. Ask for decisions, not achievements. Take references that ask "what did they own" rather than "were they good". And be honest about the state of your own operation, because a candidate assessing you honestly is exactly the candidate worth having.

None of this is complicated. It is simply harder than reading a CV and warming to a confident interview, which is why so few businesses do it, and why the £132,000 figure is as common as it is. The difference between a good operational hire and a costly one is rarely the candidate pool. It is the quality of the assessment.

Sources

Recruitment & Employment Confederation, cost of a poor hire at mid-manager level; Culture Amp research on attrition following leadership change, reported 2024-25. Figures correct at time of writing.

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