Vacant positions in your company carry many problems and not all of them are obvious at first sight. To counter this and clarify these costs, we have created a Vacancy Costs Calculator. Using the average salary for each position, factor of relevancy and average vacancy days, we can estimate how much revenue you are losing on a yearly basis.
Vacancy costs are the estimated losses in revenue that a company’s faces due to vacancies and describes the business impact of the shortage of skilled workers. Today, many organizations tend to have a strong focus on cost minimization, overlooking the potential long-term and negative impact of how they handle vacancies. Consequently, there is a discrepancy between understanding a vacancy as saving costs or as an investment.
Unresolved personnel issues are widely spread among German medium-sized businesses. As a result, companies suffer from lost sales, unmanageable workloads and an overall reduction in productivity and profitability. At first glance, savings in salaries, overheads and benefits seem to increase the company’s turnover. However, a profound confrontation with the issue quickly reveals that the opposite is the case.
Problems with vacant positions become increasingly significant, depending on the relevance of a position for a company. If, for example, a company is struggling with deficiencies or problems in sales, such a vacancy is more severe than in a stable situation. This is why it is extremely vital to analyse the economic consequences of the lack of an efficient employee in key positions within your company.