What is a Vacant Position Really Costing Your Organization?
There are are hard numbers that you can use to figure out the cost of that empty desk – and they are relatively easy to calculate.
There are a number of ways you can calculate the direct and indirect costs a vacant position may have on your company- the Cost Approach, the Cost of a Replacement, Recruiting Fees, Employee Training, and Onboarding Cost, Severance Pay, etc. To understand the daily revenue loss incurred by an open position, let’s use a simple salary multiplier approach using a position with a salary of $80K. Most employees across a majority of industries generate revenue between one to three times their yearly salary. Using two as our multiplier and assuming there are 220 working days in a calendar year, divide 80,000 by 220, which equals $363.63. Then, apply the multiplier: 2 x 363.63. This tells us that the vacant position is costing the organization around $727.26 daily and $3,636.30 over a five-day work week.
Source: InSource, A Vacant Position is More costly Than You Think, 2017