There’s a common misconception that open positions save on payroll and benefits. However, taking too long to hire can negatively impact the top and bottom lines in ways that hiring managers may not have considered.
According to the Society for Human Resource Management (SHRM), the average position takes 42 days to fill at a cost of $4,129 and the average cost of an open position is $500 per day.
The longer it takes your business to fill an option position, the greater the costs. Here are just a few of the ways a vacant position can negatively impact your company both short and long term.
Increased expenses
Vacancies have a trickle-down effect on the rest of your organization, so do not be fooled into thinking that the cost of an open position is just temporary overtime. Some costs that need to be considered when thinking of leaving a job vacant:
- The money it takes to hire a new employee
- The cost of the loss of production of the vacant job role
- The cost of overtime to cover for the vacant job role
- The cost of offloading work to cover for the vacant job roles
- The loss of sales volume due to inability to satisfy orders
Minimizing any cost, both measurable and not, helps businesses focus on the more important things that will help their business grow and thrive.
Higher turnover rates
A vacant position brings challenges for not only the company, but also the other employees. Employees are forced to pick up to the slack for the open position and the increased work demand is bound to create frustration, stress and fatigue if it goes on for too long.
Filling open positions as quickly as possible can help limit employee turnover and makes your business a place where people want to work.
Lower quality products and services
Stretching staff too thin reduces their ability (and desire) to make quality a priority. Their goal becomes to simply get the work done, which can result in subpar results in your products and services.
When you partner with a staffing and recruiting firm, there are fewer disruptions to your day-to-day operations. You’re able to continue to provide the same level of products and services that your customers have grown to expect.
If you have vacant positions that you’re struggling to fill, endevis can help you avoid all of these costs. Contact us today to see what we can do for you!
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