Workforce Cost Assessment: Poor Hire vs. Extended Vacancy
Use this guide to compare two often-overlooked workforce cost centers: making the wrong hire and leaving an important position open for too long.
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What’s more costly: hiring too slowly or hiring the wrong person?
The downside of leaving a position open for too long is obvious: lost productivity, a team stretched too thin, missed customer expectations, and more.
But hiring too fast and hiring the wrong person is also costly. And it can often lead to more costs than you realize.
Costs associated with a poor hire
- Direct costs (e.g., wages, payroll taxes, benefits, insurance)
- Productivity loss
- Management and team time, rework or compliance issues, separation costs
- Cost to recruit and onboard the replacement
Costs associated with an extended vacancy
- Overtime coverage costs
- Lost contribution margin or lost output
- Delay, quality, or customer cost
- Manager hours spent sourcing, scheduling, interviewing, and reprioritizing, valued at hourly cost
When you compare these two cost centers, you can make an informed decision about how long a hiring cycle should take and what the risk of a poor hire is relative to a vacancy.
We put together a tool to help you determine these costs and calibrate your recruiting efforts accordingly:
About Ethan Allen Workforce Solutions
We’ve been helping Hudson Valley organizations recruit and hire excellent candidates for 50 years. We’ve got deep roots in our community, and we’re dedicated to building connections between driven local workers and the organizations that help our region thrive.
We can help you avoid the costs and risks of a rushed recruiting cycle by building a list of top candidates matched to your specific needs. If you’re interested in learning more, please reach out today and connect with our team.