Many employers struggle to keep positions filled in today’s competitive job market. The more extended positions remain unfilled, the more it hurts your company’s bottom line and negatively impacts employee morale. Find out How much does it affect your company bottom line to not fill that role. Find out the cost of a vacant position.
The Financial Impact
Calculating the actual cost of employee vacancies is complex and time-consuming. A study by Dr. John Sullivan, a well-known author, international speaker, and advisor to Fortune 500 and Silicon Valley companies, sets the cost of a vacancy in the thousands of dollars per day. In some key roles, a single vacancy costs the company upwards of $7,000 daily. Some engineering positions could be as high as $20,000 a day.
The Business Impact
Beyond the financial impact, employee vacancies also affect engineering, production, marketing, and sales. Many factors go into the calculation of the cost of a vacancy, and the more open spots you have in your employee roster, the more serious these issues become.
Departments within a business work closely together to develop and produce products and services. Any disruption in a department adversely affects the others. Understaffing due to employee vacancies lowers the probability of meeting productivity targets, and not meeting those goals also impacts other related departments.
Culture and Brand
Excessive or extended employee vacancies affect your company’s culture and brand image. As you struggle to hire new employees, it may adversely affect the hiring screening process and allow poor performers to slip through the gaps. Once you’ve hired poor-performing employees, you may not be able to secure top performers in the future.
Employee vacancies also send a message to competitors and analysts that your company may weaken, a warning sign that can manifest in increased competitive pressures and stock market issues. This sign of organizational weakness also impacts recruiting, sending a message that your hiring process is vulnerable and inefficient concerning your hiring process.
The Social Impact
Employee vacancies also affect other employees as individuals and as a team. A vacancy may mean picking up extra work and obligations for individual employees. Though functional in the short term, it leads to stress, decreased productivity, and reduced job satisfaction if the situation remains unresolved.
This overwork and frustration also spread to co-workers and team members, disrupting team cohesiveness and increasing grievances, productivity issues, and absenteeism.
Employee vacancies truly impact your business on many levels. Investing the effort to avoid vacancies and recruit top performers when vacancies occur improves your business on many levels and helps you stay one step ahead of the competition. To fill your open seats, get in touch with the recruiting experts at ABBTECH!