The Spanish labor market continues to show signs of dynamism, though it also maintains high turnover levels that complicate hiring processes for companies. Just in February 2026, Spain’s Social Security system added 97,004 contributors, pushing the total beyond 21.6 million, while unemployment rose slightly by 3,584 people to stand at 2.44 million unemployed.
Meanwhile, contract durations remain short in many cases. According to recent labor-market data, one in three contracts signed in 2025 lasted less than a month, and one in five did not exceed a week. This dynamic reflects high labor mobility that increases pressure on HR departments to get the talent selection right.
In this context, hiring mistakes remain relatively common. Industry studies show that nearly one-third of Spanish companies (31%) admit having hired a profile that did not fit the role or the organization, while 74% of executives acknowledge having hired the wrong person at some point.
“The impact of a bad hire is often underestimated. It is not just the salary paid during the time the employee remains with the company. You must consider the recruitment process, onboarding time, the productivity that is lost, and the cost of starting the process again,” says Silvia Balcells, CEO of Synergie Spain.
The economic impact of these decisions can be substantial. The true cost of a bad hire is not limited to the salary paid during the time the employee stays; it also includes the recruitment process, the time invested in onboarding and training, the loss of productivity, and the need to restart the search. In economic terms, the impact can range from 1.5 to 3 times the position’s annual gross salary. In the case of a mid-level manager earning €45,000, this could translate to more than €100,000 in direct and indirect costs.
Better Evaluation to Reduce Hiring Mistakes
Against this backdrop, more and more companies are strengthening their talent assessment processes with testing tools that complement traditional interviews. Psychometric assessments such as DISC or similar methodologies allow analyzing technical competencies, soft skills, and the cultural fit of candidates with greater precision.
These tools not only help improve decision-making in selection processes but also enable identifying strengths and development areas within existing teams. In this way, organizations can spot profiles with potential to take on new responsibilities, reallocate roles, or design training itineraries more closely aligned with real business needs.
According to data from the Society for Human Resource Management (SHRM), organizations that incorporate these evaluations into their hiring processes report 24 % lower turnover and have 25 % fewer chances of making bad hires.
Abet on Internal Mobility to Win with External Hiring
Meanwhile, companies are increasingly betting on internal development and mobility as an alternative to external hiring. LinkedIn data show internal mobility up 20 % in the last two years, and 41 % of companies expect to fill more than 30 % of their vacancies with internal talent.
This strategy presents advantages in terms of productivity and costs. Employees who move to a new role within the organization reach their level of competence about 20 % faster than external hires. Conversely, new hires typically operate at only about 25 % of their potential productivity during their first month and may take three months or longer to reach full performance.
Additionally, companies that foster internal mobility exhibit significantly higher retention rates. Employees who undertake an internal move are 40 % more likely to stay for at least three years with the organization, and firms with strong internal-mobility programs report an average tenure 53 % higher.
From an economic standpoint, betting on internal talent is also more cost-efficient: external hires can be 18 % to 20 % more expensive than internal promotions, and the total cost of the recruitment process can double when relying on the external market.
Therefore, combining evaluation tools, internal-mobility programs, and professional development plans can reduce hiring mistakes, improve team productivity, and strengthen professionals’ commitment to the organization. “Organizations that analyze talent—both internal and external—more thoroughly make better decisions and build stronger teams. Investing in assessment, development, and internal mobility has become a competitive differentiator,” concludes Balcells.
