"If you leave
a position unfilled, associated with that is a significant cost."
What is the value of an established relationship with an executive search
firm such as Strategic Search Solutions Inc. for current and future hiring
needs? Continue on and view the below equation to determine how much
money your organization saves by eliminating the unfilled position.
Using a pre-established relationship with a search firm has value because
it greatly decreases the time to fill open positions, and it reduces
the cost of lost revenue from not having that position filled. A vacant
position can cost your company or firm hundreds of millions of dollars
across all open and unfilled hiring needs. To calculate how much an
unfilled job costs you, use the following equation (this equation has
been extremely simplified for illustration purposes):
Step 1
Annual revenue generated by the company = Revenue
per employee per year
________________________________________
Number of revenue generating employees
Step 2
Revenue per employee per year = Daily revenue
per employee
________________________________________
365 Days (not adjusted for vacation and holidays)
Step 3
Daily revenue per employee X Days
position unfilled = Revenue lost per day per unfilled job
Step 4
Revenue lost per day X Number
of open jobs = Total revenue lost per day for all open jobs per unfilled
job
Total revenue lost
per day for all open jobs can easily approach millions of dollars for
an organization when using this simplified formula.
