The Hidden Price of an Open Position

Recruiting Business Non-Profit
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An open position may appear to save money, but the work attached to it rarely disappears. It gets absorbed by managers, redistributed across the team, delayed, or left undone.

Over time, those tradeoffs have a cost. Overtime can increase. Projects can stall. Managers spend more time filling gaps and less time leading. Employees carrying extra responsibilities may begin to burn out.

That is why the cost of an open position is often much greater than the cost of recruiting someone to fill it. Before deciding how much to invest in a search, it is worth looking at what the vacancy is already costing your organization.

Lost Productivity

When a position is vacant, the work doesn’t disappear. It often gets redistributed to existing employees.  Team members may take on additional responsibilities, managers may become more involved in day-to-day tasks, and important projects may be delayed while everyone works to compensate for the missing employee.  Are you paying a manager to lead or to be in the weeds?

Over time, productivity can suffer because employees are spending less time on their primary responsibilities and more time covering the open position.  You also run the risk of burning out your current team by impacting their work-life balance, more about that further on!

Overtime and Additional Labor Costs

An open position can also increase your labor costs.  Existing employees may need to work additional hours to keep up with the workload. Or temporary employees, contractors, or other outside resources may be brought in to fill the gap.  What initially looked like savings from an unfilled salary can quickly turn into overtime, contractor, or temporary staffing costs.

Employee Burnout and Turnover

Perhaps one of the most underrated costs of an open position is its impact on your current employees.  When teams operate below capacity for an extended period of time, your high performers can become frustrated and overwhelmed. Employees who consistently take on additional work may eventually reach a point where they become disengaged and begin considering other job opportunities.

That creates a difficult cycle:  Open position -> increased workload -> employee burnout -> turnover -> more open positions.

The cost of replacing an employee who leaves because of unnecessary workload pressure can be significantly greater than the cost of filling the original open position right away.

Delayed Projects and Missed Opportunities

Some vacancies affect more than the immediate team. An open position may mean a project doesn’t launch on time, a client isn’t served as quickly, or a new business development opportunity isn’t pursued.  For revenue-generating positions, the impact can be even more direct. Every week a sales, business development, or client-facing position remains open, could represent missed revenue.  Even positions that aren’t directly tied to the bottom line can have a significant business impact when their absence creates bottlenecks elsewhere in the organization.

Manager and Leadership Time

Hiring is time-consuming, and difficult searches require even more time.  Hiring managers and other business leaders may spend hours reviewing resumes, conducting interviews, coordinating schedules, communicating with candidates, and restarting the process when candidates withdraw.  That time comes at a cost.  Every hour a leader spends trying to fill a position is an hour they aren’t spending on managing their team, serving clients, developing their business, or focusing on strategic priorities.

What Is Your Open Position Really Costing You?

Before deciding that hiring a recruiter is too expensive, consider the cost of leaving the position open.

Ask yourself:

  • How many hours are existing employees spending covering the vacancy?
  • Are we paying overtime or using contractors?
  • Are important projects being delayed?
  • Is customer or client service being affected?
  • Is company culture suffering?
  • Are managers spending significant time recruiting instead of leading?
  • Are we losing revenue or business opportunities?
  • How much longer can the team realistically operate without this position?

 

Hiring a recruiter comes with a visible cost, but leaving a critical position open has costs too, and those costs can be much harder to quantify.

When a search has stalled, the fee for outside recruiting support is only one part of the decision. The organization also needs to consider the ongoing cost of lost productivity, added workload, delayed priorities, management time, and missed opportunities.

In some cases, bringing in outside recruiting expertise can help expand the candidate pool, reach people who are not actively applying, and give internal teams back time they have been spending on the search. At the end of the day, hiring a recruiter doesn’t just fill a position faster (though that often happens). The real benefit of partnering with an experienced professional is that it reduces the organizational strain that comes with leaving an important role unfilled for too long.

Authored By
Angela Wurtz
Angela Wurtz

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