Adams & Garth Blog

When you’re busy focusing on the many responsibilities of running a busy organization, it’s easy to let certain tasks fall by the wayside, like staffing and hiring. But did you know that you could be costing your company money every day that you leave certain positions unfilled? It makes sense when you think about the fact that vacant apartments and open airline seats cost those companies money. Likewise, an unfilled position at your company translates into a similar lost revenue situation.

It’s not easy to assign a specific cost to an open position. However, there are formulas for estimating what an open position is costing your company. Here’s one:

R = Annual Company Revenue
E = Number of Employees

Calculate Revenue Per Employee
R / E = Revenue Per Employee

Calculate Daily Revenue Per Employee
Revenue per Employee/365 = Daily Revenue Per Employee

It’s important to keep in mind that some positions are going to cost you more than others. If you have a position that’s open at your company, and you’re uncertain whether you should fill it or not, ask yourself two questions:

1) Which positions should I be recruiting for now? (i.e., which unfilled positions are costing you the most based on the estimates you calculated?)

2) What will it cost to recruit for these positions?

If recruiting costs are less than the cost to leave the position open, you need fill that position fast. Even if the costs are close, or recruiting costs more, you still may want to consider filling the position. Recruiting costs are temporary, while the cost of the open position is a daily expense.

If you need help hiring for your company’s job openings, please contact Adams & Garth. As a leading staffing agency serving Central Virginia, we can help you hire highly qualified candidates and reduce the impact of an open position on your company’s bottom line.