Why are your open positions costing you a lot

Erik Fiala
Erik Fiala
Founder, CEO at Source
Jan 17, 2023
4 min read
Man signing documents
Introduction

Are you struggling to fill open positions at your company? It might be because you're not aware of the hidden costs associated with them.

1. Cost of advertising

First, let's talk about the cost of advertising. Posting a job online can be pricey, especially if you're using a well-known job board or recruitment agency. These costs can add up quickly, especially if you're trying to fill multiple positions at once.

2. Limited resources

But the costs don't stop there. Have you ever considered the time and resources it takes to review resumes and conduct interviews? It can take a significant amount of time and energy to sift through resumes, schedule interviews, and make a decision on the best candidate. This can be a real drain on your resources, especially if you're short-staffed to begin with.

3. Not filling the position

Another cost to consider is the opportunity cost of not filling the position. When a position is left vacant, it can lead to a domino effect of problems. Other employees may have to take on additional responsibilities, which can lead to burnout and increased turnover. Not to mention, the longer the position remains open, the more it can impact your company's bottom line.

4. Lack of clear job description

Another reason why open positions may be costing your company a lot is due to a lack of a clear job description and qualifications. This can lead to a flood of unqualified candidates and a longer hiring process as you sift through resumes and interview people who may not be a good fit for the job. This not only takes up more of your time and resources but also increases the likelihood of making a bad hire, which can be even more costly in the long run.

5. Employee morale

Another cost to consider is the impact on employee morale. When a position is left vacant, it can create added stress and pressure on current employees who are forced to take on additional responsibilities. This can lead to a decrease in employee satisfaction and motivation, which can ultimately impact productivity and the overall culture of your company.

Additionally, not filling open positions promptly can also impact the company's reputation. Customers and clients may notice that the company is understaffed and may question the company's ability to provide quality service. which may lead to a decrease in customer satisfaction and ultimately loss of business.

Solution

So, what can you do to reduce these costs? One solution is to be more strategic with your hiring process. This could include streamlining your recruitment process, implementing an employee referral program, or even offering incentives for current employees to refer friends and family. Another option is to consider a temp-to-perm arrangement, which allows you to "test drive" a candidate before committing to a full-time hire.

Conclusion

In summary, open positions can be costly in multiple ways, including advertising costs, resources spent on recruiting, lost productivity, employee morale, and reputation. It's crucial for companies to be aware of these costs and take steps to minimize them by being strategic in their hiring process and filling open positions as soon as possible.

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