The Cost of an Unfilled Position
What is an established relationship with an executive search firm such as
The Clarks Group for all of your present needs worth? The following
equation shows how much money your company saves when you eradicate unfilled
positions.
Use of a pre-existing relationship with a search firm has value because it
greatly reduces the time to fill open positions and it reduces the cost of lost
revenue from not having that position occupied. An unoccupied position can cost
your company or firm thousands of dollars across all open and unfilled hiring
needs. Use the following equation to determine how much and unfilled position
can cost.
Step 1-
Annual revenue generated by company = Rev per employee per year
Number of revenue generating employees
Step 2-
Revenue per employee per year = Daily revenue per employee
365 Days (not adjusted for vacation and holidays)
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 = Total revenue lost per day for all
open jobs per unfilled jobs
Using this simplified equation can easily calculate thousands of dollars lost in
total revenue per day for all open jobs.