What Is That Empty Chair Costing You?
It's tempting to assume that you save money by leaving a position open. After all, as long as the position is open, there is no need to pay a salary. However, in a productive organization, every position must contribute far more than just the employee's salary to justify its existence. With every worker already contributing 100 percent to your company's ability to generate revenue, leaving a position unfilled can have significant costs.
For this reason, a growing number of forward thinking organizations have embraced Cost of Vacancy as a vital metric to monitor and control their recruiting and turnover costs. To assist you in tracking this for yourself, we have developed a Cost of Vacancy Calculator that will help you pinpoint exactly what that empty chair is costing you.
A Burden on the Team
When there is a void, a manager responds by redirecting resources to fill it. This means diverting time and energy away from the team's daily duties, and what began as a disruption takes on more significance. Ultimately, it can have a negative impact on the morale of employees who are diverted and wonder why management can't find a suitable replacement.
Trying to Fill the Void
Supervisors often take it upon themselves to fill the void left behind by lending a hand. While it initially sends a positive message to employees, in reality it becomes a drain on time that could be spent on more strategic management issues, not to mention interviewing and recruiting promising candidates. When there are too many openings or vacancies that remain open for too long, managers get anxious. This can result in managers reaching for the panic button and scrambling to hire sub par performers.
The Bottom Line
Ultimately, diminished productivity negatively impacts a company's ability to generate revenue. When turnover is not addressed with aggressive recruiting for quality replacements, businesses end up paying the price in time and money.