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THE REAL COST OF AN OPEN VACANCY

By Max Levent



Everybody knows that empty seats cost money. A vacancy means you can’t take on
as much work which then means that you don’t generate as much turnover and,
ultimately, you realize lower profit margins. But did you know that each vacancy
costs more than that?

 


THE COST OF RECRUITING

For every open vacancy that you are actively recruiting for, you are paying
wages for your HR team to run adverts, handle queries from interested job
hunters, review CVs and application forms, support managers with HR best
practice and at interviews, draft letters to both successful and unsuccessful
candidates and provide feedback where it is requested. This means that not only
is your vacancy resulting in reduced productivity, but it is also costing you
money.

 

Once you have selected a candidate, there will be a delay before they become
effective. This is due to the need to train them, and to embed them into the
team and the established ways of working. They will need time to become familiar
with the software and corporate approach to delivery, the needs of the clients
and the style of the business.

 


THE SOFT IMPACT

Vacancies also affect your existing staff. Staff that have to take on additional
responsibilities or work longer hours to ensure that the work gets done when a
vacancy has not been filled can become stressed, demoralized and unhappy. They
can begin to feel as though the business doesn’t care about them, especially if
there is no end in sight to the extra workload or if they are not being
appropriately rewarded for their extra efforts.

 

This may not cost you money in the short term, but dissatisfied staff are not
productive and low morale could lead to increased staff turnover, which is
disastrous for business, not only resulting in more vacancies and less
productivity but further recruitment costs to try and backfill.

 


TIME TO HIRE

The time to hire is critical. A recent study by LinkedIn [1] revealed that it
can take up to 49 days to fill a vacancy. That is 49 working days – seven weeks!
When you add in a month or two for training and development, this represents a
huge amount of time for a business to be operating at a sub-standard level and
is why businesses should incorporate proactive HR strategies into their
operating model.

Making sure that the employee value proposition that you offer is sound and will
improve staff retention. This means providing adequate financial compensation
for each employee and offering opportunities for career development. Paid
training and career enhancement initiatives go a long way towards building a
productive culture in which staff commit to the business in order to develop
their own skills and experience. Meeting the work life balance needs of your
employees can include offering flexible working strategies, including the option
for remote or hybrid working patterns.

 

By investing in your existing employees, you don’t just improve retention, you
can almost eliminate the need for recruitment for all except specialist and
short-term roles as developing your own pipeline of talent means that staff can
be deployed flexibly within the organization to suit its needs at any particular
time. Investing in resource allocation software also allows you to identify
future skills gaps early, allowing time to recruit and avoiding a situation
whereby you are forced to cover a gap.

 

This isn’t to say that external recruitment can be entirely avoided, but there
are ways in which you can streamline the process, and one of these is to employ
the services of a dedicated talent management company such as Clear Recruitment.
We have access to a pool of talented job hunters and can identify the most
appropriate candidates for your upcoming and existing vacancies, thus reducing
the time and cost impact to your business. For information on how we can support
you with filling your vacancies, please contact us today.

 

Contact info:

+44 (0) 203 355 4054

info@clear-er.com

Resources:

[1]
https://www.linkedin.com/pulse/can-you-wait-49-days-why-getting-hired-takes-so-long-george-anders/




POST NAVIGATION

How a talent partner could spell the end to your recruitment problems

NEWS/BLOG CATEGORIES

News/Blog categories Select Category Blog  (14) Uncategorized  (4)

LATEST POSTS

 * The Real Cost Of An Open Vacancy December 15, 2022
 * How a talent partner could spell the end to your recruitment problems
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 * Are you getting paid what you are worth? March 8, 2022
 * 3 Things to do Today to Attract Better Talent ! March 2, 2022




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+44 (0) 203 355 4054


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