THE COST OF AN UNFILLED POSITION

"If you leave a position unfilled, associated with that is a significant cost." 

What is the value of an established relationship with an executive search firm such as Leaders IT Recruitment for current and future hiring needs? Continue on and view the below equation to determine how much money your organization saves by eliminating the unfilled position.

Using a pre-established relationship with a search firm has value because it greatly decreases the time to fill open positions, and it reduces the cost of lost revenue from not having that position filled. A vacant position can cost your company or firm hundreds of millions of dollars across all open and unfilled hiring needs. To calculate how much an unfilled job costs you, use the following equation (this equation has been extremely simplified for illustration purposes):


Step 1 

Annual revenue generated by the company Number of revenue generating employees

= Revenue per employee per year

Step 2 

Revenue per employee per year 365 Days (not adjusted for vacation and holidays)

= Daily revenue per employee

Step 3 

Daily revenue per employee X Days position unfilled

= Revenue lost per day per unfilled job

Step 4 

Revenue lost per day X number of open jobs per imfilled job

= Total revenue lost per day for all open jobs

Total revenue lost per day for all open jobs can easily approach millions of dollars for an organization when using this simplified formula.