How much does a bad hire can cost you?

Hiring the right candidate for the right job is still one of the major challenges faced by recruiters and hiring managers. But on the other hand, what will happen if you hire the wrong person. How much does a bad hire can cost you? 
A bad hire can cost you so dearly. For example, let us assume that you hired a person and after three months, that person is fired. What happens? All the money that is spent on writing job specs, advertising, resume and phone interviews, technical tests, technical interviews, employee salary for 3 months, training costs, etc are lost. If you calculate the cost at an average hourly wage of $60, then you might lose up to $40K. What is more painful is you need to spend the same amount if you need to find a replacement. So a bad hire can cost you roughly around $80K. 
In addition, a bad hire causes inconvenience, increases the stress, results in missed opportunities, can demoralize other employees and it can affect your reputation also. 
So it is essential for recruiters to source qualified candidates, screen and shortlist the right candidates, and perform a thorough candidate background check before making the hiring decision.