How much is that open position costing you?
There are numerous costs associated with an unfilled position in any company. Many of these costs are difficult to quantify, but nonetheless are very real, and can be very costly.
TEAM COSTS: Leadership, idea generation, and skills are lost. There is an increased chance of others leaving. Team unification may be dramatically impacted. Open positions may affect the idea generation of others because co-workers are frustrated or overworked and may adversely affect product quality through increased error rates.
PERSONNEL COSTS: Is-the-company-doing-well gossip. Greater incidences of illness, absenteeism, and tardiness, Less focus on employee growth because they are off in a training session, Increased frustration, Less quality work; increased error rates, Lower chance of employees reaching individual goals, Higher turnover, Reduced creativity and innovative.
MANAGEMENT COSTS: Less manager time with employees Frustration over less corporate support higher middle-management. This can impact morale and it may lead to a high management turnover rate.
COMPETITIVE ADVANTAGE COSTS: Excessive vacancies may cause employers to panic and to "quickly" hire some poor performers. Once the team is saddled with a large number of poor performers, they may never be able to hire any new top performers. Analysts perceive them as weak. Competitors see them as vulnerable.
CUSTOMER COSTS: The aftermath of unfilled jobs leaves bad impression on the minds of customers that a certain organization is getting weak or they don't care about them. This would in turn lead to loss of sales volume, unfilled orders and reduced service, new product launch delays and false impressions.
REAL COSTS: Loss of revenue is the most obvious and most quantifiable cost associated with open positions
Don’t be fooled into believing that open positions cost you only some overtime. The truth is Unfilled Job can expose your organization to unforeseen and unacceptable expenses.
What’s the Cost of Your Unfilled Jobs?
Talent is the major and most important recipe required by an organization to succeed.
An organization has to hire the right talents to compete and meet their objective. They rely on employees to produce results and serve customers.
But what happens when there is shortage in talents to fill in important jobs?
What is the outcome of having position left unfilled in an organization?
Talent shortage is a plague which is continually experienced by employers and companies globally. Finding the right talent and candidate for an open job can be quite overwhelming and frustrating. Manpower Group’s,( a worldwide workforce agency), survey of more than 37,000 employers in 42 countries and territories found that 36 percent of global employers are having difficulty finding candidates with the right skills to fill open positions. Talent shortages continue to persist and are impeding employers' ability to deliver value for their customers.
Due to the lack of applicants with the right technical competencies, experience and soft skills, one out of three employers struggle to fill open roles. The Talent shortages reduce their competitiveness / productivity as the right person to fill an unfilled post is very hard to come by. Research has it those employers in Japan reports the greatest talent shortages globally (81%). Acute shortages were also reported in Peru, India, Argentina and Turkey respectively.
Sometimes companies and employers who are looking to hire can’t pay much to acquire the right skills and the perfect candidates. Out of necessity, to catch up with their competitors, companies look carefully at the traits of their current, proven top performers, then come up with a profile of who is most likely to succeed, and hire people who match the profile, even if their skills and experience aren't ideal.
In fields like food service and education, companies need the same IT expertise and other specialized skills that other industries need, but they can’t pay as much as, say, the financial services industry can. So the lower-paying employers have had to think about how to find and develop a broader pool of candidates -Assessing candidates’ attitudes and behaviors to find the right ‘fit’ and then training them for the available jobs.”
Convincingly, that means every day you leave a position unfilled, it costs your business money.
When a job stays vacant, you can’t adequately serve your clients. Reduced competitiveness and productivity in the workplace is bound to occur
“It takes a willingness to make a long-term investment in creating your own internal talent pool.”
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