It’s no secret that this job market has businesses struggling to find and retain qualified employees. Just one empty IT role could be costing you more than $15,000 a month! (It’s what we call the cost of vacancy or CoV. More on that later).
Whether you’ve got vacant seats now or you’re planning to scale up soon, it’s important to understand how much you’ll spend before positions are even filled.
Already know what you need? Talk with our talent acquisition team today!
How To Calculate Cost Of Vacancy
So how do you calculate the cost of vacancy (CoV)? Research has shown that an average employee’s value to the company is between one and three times their annual salary.
So let’s do a basic cost of vacancy formula. An important role making $100,000 conservatively delivers $200,000 in value. Divide that value by the average number of working days in a year (260) and you’re looking at $769 bucks per work day.
If that role is vacant for 2 months, the average cost of vacancy is a staggering $15,000+ per month you’re spending without any value returned.
It’s easy to see how a vacant role really starts to add up the longer it goes unfilled. Now imagine you have multiple open positions – the cost you’d pay for no ROI is a killer.
And monetary value isn’t the only cost to consider. With vacant positions, your current team is stuck absorbing the workload of that missing role. This quickly leads to employee dissatisfaction and burnout.
Plus, that missing role could cost you biz dev opportunities if your team is missing critical subject matter experts to help close the deal .In the fast-paced world of start-ups, an issue like that can be the difference between clients choosing your competitor over you.
The Difference Between Recruiters and DIY Hiring
When you’re looking to fill a position in your company, you can either use a recruiter or try to do it yourself. On average, it costs $20,000 to hire one person. After the many resources needed to fill that seat (payroll, IT setup, benefits, etc.), there’s still a risk your new hire isn’t the right fit. And the process starts all over.
There’s a perception that recruiters don’t provide enough value to justify their cost. But with their wide network and expertise, you’re more likely to find and retain the best talent in the market.
So, what’s a growing company to do ? Here’s a breakdown of what to consider before making your choice.
On the pro side, recruiters can help you navigate the job market, take care of the tedious paperwork, and connect you with candidates outside your network. They also have inside knowledge of the hiring process and can give you valuable feedback on your job application requirements. But you do relinquish some control over the hiring process.
With DIY hiring, you have full control of the process. But if you’re not familiar with the tech industry, it’s difficult to properly vet candidates. Although this guide may help!
When you DIY, you don’t pay a “middleman”, but that means you’re entirely responsible for the time-consuming process of finding, attracting, hiring, and retaining top talent. If you’re hiring for multiple IT roles, this process quickly becomes overwhelming.
The Codesmith Difference
At Codesmith, our recruiting team knows IT because we work in the IT world. As a software development company, we’ve spent the last decade building connections, honing the interview process, and hiring top quality talent for both ourselves and satisfied clients.
With custom-built testing tools, we validate candidate skills before their application ever reaches your inbox. Our combination of email and phone interviews ensures candidates have the soft skills to enhance your company culture along with those critical hard skills.
With no upfront engagement fees, it’s in our best interest to find you the best fit. You only pay after a successful placement has been made.
We’re so confident in our recruiting services, we offer a no-strings-attached partnership. If you’re not happy, you can walk away anytime.
Let’s Talk About Your IT Staffing Needs
If you’re ready to scale up, our team is behind you. From direct hires, temporary staffing and temp-to-hire, we’ll deliver top candidates to elevate your business. Contact our recruiting team today to build a game plan.