The cost of an open or unexpected vacancy
An unexpected vacancy… This happens to every manager at some point. It might be a serious sickness, family circumstances/relocation, or just a valued employee taking a new position. But from the backend of that a key post becomes available.
“We’ll take care of it,” you could think. “Others will do the work, or I will, and we’ll fill it eventually.”
Is that, however, the best approach?
When starting out in business, the expression “cost of vacancy” is well-known. This is commonly determined by dividing annual income by personnel count. Is that, ultimately, an accurate reflection of the full cost? No. Even seasoned executives usually underestimate the true cost of an unexpected available job.
We understand that every hire comes with a cost that can have a positive or negative impact on a business, which is why we launched a Midas Recruitment Salary Survey to assist you in understanding what market averages truly look like. Click here to view.
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Client Interaction
Did the former employee interact with people outside the company? If so, you may have an even greater problem. Sales may be lost, and problems may not be solved. It is critical that all who deal with your company work with excellent people who are thoroughly conversant with their specific needs. Clients will not respond well to dealing with “stand-ins” who are not thoroughly knowledgeable.
Reduced Department Effectiveness
In a multi-person department, the rest of the team will suffer too, and in ways that may not be readily apparent.
It is a common misconception that the former employee’s work will be done effectively, as others jump in to try to “cover.” However, if your workload was instantly increased by 30%, would the rest of your performance suffer? Yes. So, will the performance of other employees be affected?
Lack of Management Effectiveness
If the vacant position is management, the situation is worse. Communications, both upward and downwards, will suffer markedly. Upper-level managers will have difficulty effectively transmitting directions to “line” employees. And relevant important decisions regarding the direction of the department simply will not be made. Think, for example, of delays or errors in marketing a new product or the inefficiencies in the company’s finances. A management vacancy can be very expensive.
Filling The Position
If you move quickly to fill the position, the only difficulties will be in finding and selecting the right candidate. But delay reduces your odds of doing so.
When a position is open for longer than absolutely necessary, candidates will know it – and so will your competitors. Questions will be raised as to why. The result will be greater difficulty in filling the position with the best candidate – and your reputation in the market may suffer as well.
Whats the Answer
The first thing you should do is act quickly. Don’t think time will enable you to make a better decision. Putting any open position – especially an important one – on the “back burner” is a mistake.
The second thing is: Go to the trouble of writing out your description of just the candidate you need in your own words. Do not fall into the “job-description boilerplate”.
Call your industry-specific search consultant you know and follow this next step.
“When the recruiter sends the first candidate for an interview, spend some time, even if at first glance that person is not what you’re looking for. Then call up your recruiter and explain in some detail where they are on target and where they are off. Do this after each candidate. Pretty soon they will zero in and start sending you the exact kind of people you want to choose from.”
So Where are we?
Depending on the specific vacancy, this situation can affect the department, the manager’s career and possibly even the company itself. But it doesn’t have to be that way.
Acting quick can go a long way, because it won’t be too long until your existing staff will not be able to cover all working load and specific jobs need to be assigned to industry qualified individuals.
If the above steps are followed when a vacancy occurs, the problems and inefficiencies experienced by many managers and companies can be avoided. The result will be a smooth transition with an even stronger department.
Find your next hire with Midas Recruitment
If you’re ready to kickstart your hiring needs, then contact one of our recruitment consultants today. We take our the time to understand what your business needs are, and only send you candidates that we know will thrive in your business.