Reskilling and Apprenticeship Programs are enjoying newfound respect in today’s increasingly high-tech world of manufacturing, as trends underscore a significant skills gap and looming talent shortage in the industry. A Deloitte Consulting LLC report projects 3.5 million manufacturing jobs needed by 2025 and expects 2 million of them to go unfilled. Within this statistic, lurks a subtle yet significant drain on resources: the unfilled job position. While some companies might intentionally leave these vacancies open, anticipating economic fluctuations, the repercussions of such decisions can be more costly than anticipated.
Understanding the Financial Dynamics
On the surface, leaving a position vacant might seem like a strategic move to save funds. For instance, if a software engineer position, with an annual salary of $75,000, remains unfilled for an average of 43 days, the company might think they’re saving around $15,573. However, this simplistic view doesn’t account for the cascading costs related to the vacancy, such as the need for temporary contractors, unplanned downtime, turnover spurred by overwork and the expense of replacing these works, additional overtime for existing staff, or potential project setbacks. In addition, some companies find their staff shortages have led to additional costs in terms of quality issues, morale problems, or even an entire shift derailing because of a cranky, overworked employee. When these hidden costs are factored in, the financial picture becomes much more complex and less rosy.
Calculating the Cost: To determine the specific cost of an unfilled position, use the formula: (position’s annual salary / 260 working days) X average days to hire.
The Ripple Effect on Teams
An unfilled role doesn’t just create a gap in the workforce; it amplifies the workload on existing team members. As they grapple with increased responsibilities, the quality and timeliness of their work can suffer, leading to missed deadlines and potential errors. This can ripple out to affect client satisfaction and trust. However, when companies act swiftly to fill these gaps, the entire team benefits. Workloads become balanced, productivity rises, and the overall work environment improves, leading to increased morale and reduced turnover. It’s crucial to recognize that employee turnover has its own set of costs, from recruitment and training to the intangible loss of institutional knowledge.
The Perils of Rushed Hiring
In the face of mounting pressures, there’s a palpable urgency to fill these vacancies. But here lies a trap. The rush to hire can lead to compromises, with candidates being onboarded without thorough vetting. While they might tick certain boxes, they may not align with the company’s culture or the specific nuances of the role. The result? A potential mismatch that could cost the company even more in the long run, both in terms of finances and team dynamics.
Navigating the Productivity Maze
The impact of an unfilled position isn’t limited to the team; it reverberates throughout the company. Projects can stall, decision-making can become paralyzed, and the company’s agility in the market can be compromised. But with a proactive approach to recruitment, companies can turn the tide. By bringing in fresh talent and expertise, they can reignite stalled projects, make decisive moves, and position themselves as industry frontrunners. New hires not only bring in necessary skills but also infuse the company with fresh perspectives, fostering innovation and growth.
Reframing the Hiring Perspective
While there’s an undeniable cost associated with the recruitment process, the alternative – leaving positions vacant – can be even more detrimental. These costs aren’t just monetary; they span across team morale, productivity, and the company’s market positioning. Collaborating with a seasoned recruitment expert can be a game-changer, ensuring that companies not only fill vacancies but also onboard the right talent that aligns with their vision and goals. The best time to source a recruiting partner is before you really need one. This specialized knowledge results in a more efficient and effective recruitment process, as they can quickly identify the most qualified candidates who match your companies unique requirements. Additionally, specialized recruiting firms often have extensive networks within your industry, giving you access to a broader pool of top-tier talent that might not be readily available thru job boards or on LinkedIn.
By addressing the issue of unfilled vacancies proactively, businesses can navigate challenges effectively and maintain a competitive edge in their respective industries. Want to know more or need further support with your recruitment needs? Contact the Crown Technical Staffing team today!
Check out our new ‘Elite Candidate Attraction’ Tool. It’s designed to give HR teams across several Manufacturing and Design sectors, insight into what they can do to ensure a smaller vacancy window and reduce the effects of unfilled job requirements. You will also be provided a customized report that you can share with your team. Check it out via the link below.
