These are the costs of not filling a vacant position on time
Every company has to deal with employee turnover. Or business is going so well that additional staff is needed. Because you don't want work to come to a standstill, you naturally want new employees for those positions as quickly as possible. Besides the fact that the work that has to be done is now waiting for a while, or current employees experiencing too much work pressure, it also costs a lot of money to have an open vacant position. Before you start recruiting new staff yourself, it is important to know what direct and indirect costs are involved. We list these costs below and let you know how you can keep these costs as low as possible.
The direct cost of recruiting new staff
Let us get to the heart of the matter. Recruiting a new employee will cost you an average of € 4000 to € 6000. A rough overview of how these costs are calculated:
- Labor costs (own recruiter / HR employee, based on 2 weeks) € 1,600
- Placement of vacancies on job sites: € 2,500
- training and start-up of the new employee: € 500
- overhead costs: € 250
Depending on the experience and knowledge of the person responsible for hiring the new staff, the hours for this can add up and the costs thus increase even more.
The following example shows what it can cost you extra per day if a vacant position remains unfilled.
Suppose the vacancy concerns a position with a salary of € 45,000 per year. In general, employees generate a turnover of 1 to 3 times their annual salary. In this example, we will therefore use 2 as a multiplier (the average turnover, times the annual salary, which an employee generates for a company per year) and assume that a year has 220 working days. € 45,000 / 220 = € 204.54. € 204.54 x 2 = € 409 per day. For a 5-day working week, this sums up to € 2,045 per week. As you can see, the costs can go up very quickly without fulfilling a position.
The indirect cost of a vacant position
In addition to the above costs, which are directly related to placing and filling a vacant position, there are also indirect costs involved. Open vacancies will also affect the current employees within your company. The work that is there still has to be done. This increases the workload and employees can become overburdened when filling the vacancy takes too long. If you lose an employee as a result, your job vacancy costs will be doubled. Moreover, a vacancy that has been open for too long can cost your customers. Because it takes more time to do the same job, customers can become impatient and switch to the competitor and get what they expect faster.
In addition, a slow recruitment process, carried out by an inexperienced employee, for example, can cause you to lose top candidates who take up other positions in the meantime. As a result, you run the risk of hiring an employee of inferior quality, which will ultimately cost you extra time and money to properly settle it and keep it on board.
Keep your costs as low as possible by working together with a recruitment agency indirect cost of a vacant position
Filling a vacant position, therefore, costs a lot of money anyway. But the longer this vacancy is open, the more it will cost you. So the trick is to keep the time frame of an open vacancy as short as possible. As you may know, work is done much easier and faster by people with a lot of experience. They need to learn less, find out less, know the tools inside out and in the case of recruitment, recruiters also have a very large network, which makes finding a suitable candidate considerably easier. Calling in a recruitment agency, with experienced recruiters, may cost you money, but by far in most cases it will ultimately cost you less money than if you were to recruit staff yourself.
We at Beyondo proactively interviews candidates who can be of value to your company. As a result, we are able to approach suitable candidates today to fill your open vacant position with the best employee as quickly as possible. Curious about the possibilities and of course the costs? Feel free to contact us and hopefully we can help each other soon.