One of the most difficult situations a company faces is quickly identifying, vetting, and onboarding new hires when a position opens up. Regardless of the seniority level or specific responsibilities of the position, there is a ripple effect that occurs and it travels up and down the org chart. While there is an opportunity to re-examine the position to ensure that the requirements are still a match for organizational objectives, someone has to pick up the slack when positions open up. Having a pipeline of available talent in place is an ideal way to mitigate the consequences related to filling job openings. These consequences include:
There are specific direct and indirect costs that can be attributed to having vacant positions. While companies save in salary and benefits, the minus side of the vacancy cost equation is much higher. This article breaks down the direct costs (recruiting, severance, training) and indirect costs (loss of productivity and efficiency) and as a bonus includes a stupendously complicated formula to calculate vacancy costs. Bottom line: when key positions are open for even a short amount of time, there is an overall detrimental affect on the organization.
While this one may be impossible to quantify with hard numbers, just look around the office the next time an employee quits or is laid off. The increased workload without a commensurate increase in compensation for those left behind has an immediate, noticeable impact. If the employee was well-liked, the general morale of the office sustains an even bigger hit. All this is exacerbated the longer the position stays open which can cause resentment long after the position is eventually filled.
Time Spent Hiring
HR, hiring managers, and executive leadership are all typically involved in filling open positions. Although getting top candidates for these positions is absolutely critical, there are numerous other tasks that directors and hiring managers are responsible for. Too much time spent in the hiring process means sacrificing time that could be spent driving revenue, coaching existing team members, or implementing strategic objectives.
As you read through the list of downsides associated with having unfilled positions, think about the typical process most companies go through when a position opens. There’s revising the job description, posting to job boards, reviewing resumes, tracking down candidates for phone screens, conducting multiple in-person interviews, and then trying to get consensus from everyone involved. Imagine a completely different scenario, one where hiring managers have access to pre-vetted talent before a position is available. Think about the impact on the bottom line (not to mention the positive impact on your existing talent) of having ready-to-go candidates when you need them. Access to a pipeline of available talent is one of the best resources a business can have, one that will make a difference across your organization.
Using our solution, organizations can build a deep bench of available talent to quickly fill open positions. Give us a call at (877) 262-7358 and in 15 minutes, we’ll show you how!