Underestimating the Cost of Vacancies

May 6, 2022

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Almost all businesses do not know the financial cost they are paying when they have vacant positions. There are a few reasons why companies struggle to fill positions, specifically for technology. Recruiting talent in- house can be a challenge. Candidates don’t show up to interviews, hiring managers aren’t moving candidates along fast enough, and the IT/ cybersecurity skills gap is growing. Without the right resources, it is a time-consuming process. Sometimes companies lose track of or do not fully realize the invisible cost they are paying when their company has vacant positions, which will be explained further.

Pam Verhoff and John Hess from RPO explore why businesses are miscalculating the cost of vacancies (COV) and show how it is calculated. Businesses don’t understand that their vacant IT positions are costing them anything at all. IT employees are crucially needed for any type of company to keep safe and secure. IT experts have especially been growing in demand since companies have been transitioning to a hybrid/ remote work environment in the past couple years. Additionally, the cost of vacancies turns into a snowball effect. It starts with employees, then effects customers and candidates, and finally impacting your brand reputation. It costs money when there is a big turnover rate at a company because training costs time and money. When employees quit, their workload falls onto other employees. If a position is left open for too long, it can lead other employees to quit as well, putting the company at risk. With this issue, it trickles down to impacting good customer service. It will be harder to successfully meet deadlines, cause delays, and negatively impacting the customer in the end. It has grown seemingly harder to fill IT positions, which can harm a company if they do not have secure cybersecurity protection and knowledge. A company lacking IT employees puts a company at risk if a breach, virus, or scam occurs and the damage cannot be fixed. It’s important you are hiring the right candidate for an IT position. The cost of these vacancies overall will hurt a business’s future growth, opportunities, and safety.

To calculate your COV:  Payroll and benefits – lost revenue = cost of vacancy

CTN staffing can help you ease your worries on your business’s current IT vacancies, thus improving the invisible cost you are paying. Your COV can grow over time and snowball into effecting a large group of people, including your brand image. Calculate your company’s COV to have better knowledge on the status of your business. You may contact Rich McSweeney at rmcsweeney@ctnsolutions.com or request help through the CTN Solutions website to learn more about how our services can help your IT staffing needs.

Source; rpoassociation.org

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