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Time pressures often cause companies to
drag their feet when recruiting for new
vacancies, moving this task to the
bottom of their bulging pile of
paperwork. That’s because many
underestimate the true cost of this
delay to their organisation.
But besides the poor
impression a half-hearted
recruitment process can give to
potential candidates, these delays also have a
direct financial cost to businesses. So
perhaps it’s time to consider the true
cost of an empty desk.
SUM UP THE REAL COST
Any employee worth their salt should
have a positive impact upon your
business in terms of revenue, right?
Well, with this assumption in mind, a
simple formula can be applied to
estimate the cost of an unfilled
position and Phil Kemper, writing for
ExhibitCity News, suggests the following
calculation to give a clearer
indication:
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R = company revenue
per annum
E = total employees
R / E = total revenue per employee
Revenue per employee/365 = revenue
per day per employee |
“Do not be deceived into thinking your
open position has no real value.”
Phil Kemper
Kemper Associates |
HOW MUCH ARE YOU PREPARED TO LOSE?
Having done the calculation above, you
should now have a better understanding
of how much per day an open vacancy
could potentially cost your business. So
what should you do?
“Do not be
deceived into thinking your open
position has no real value,” says Phil.
“Do the above calculation and then
identify an acceptable future loss
level.”
By working out the maximum revenue you
are prepared to lose, you can then work
backwards to work out how long you have
to complete your recruitment process. If
your calculations showed your revenue
per employee to be £200 per day, and you
are comfortable losing £6000 at most,
this gives you 30 days to recruit - so
it’s time to get a move on! The more
time you neglect getting the process
underway, the more this loss will mount
up, and before you know it, you are
saying goodbye to thousands upon
thousands.
PROACTIVE RECRUITMENT
Of course, there are always the costs of
recruiting itself to factor in. But
when offset against the potential
losses, the resulting figures make good
business sense. It could be worth
investigating recruitment options to
find which is best for you. The right
solution will not only fill your
vacancies quicker but also ensure you
identify the right
candidates.
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