43% of jobs are filled in the first 30 days, but the other 57% are likely to stay open for 3 or more months. Leaving a position vacant for 60-90 days is detrimental to your bottom line.
Loss In Revenue
Let’s break it down. What return do you expect from your employees? In other words, if you pay someone $100,000 a year, how much value should that person generate for your company? Obviously, it should be at least $100,000, and most companies strive for a 5X+ return (or $500,000).
Let’s be conservative and assume you're looking for a 2X return:
$100,000 a year
/ 260 work days per year
x 2X minimum expected employee return
= $769 you lose each day a position is unfilled.
That’s $34,615 if a job is unfilled for 45 days! Or if you’re like most companies looking for a 5X employee return, that's a staggering $86,538 in opportunity costs. It's no debate that a company with even one unfilled position, will lose money.
You can stay within that happy 30 day hiring window by sourcing candidates in a smarter way. Ask employees to identify some top-notch people they know in their networks. Then, match great people with current openings, and save the rest for future roles. This system efficiently divides sourcing work amongst employees and recruiters and produces a 7.2X faster time to hire.
So, what's your average time to hire? What's your average salary? And what return do you expect from employees? You can do 7.2X better by sourcing great candidates smarter.
Download our step-by-step guide to smarter sourcing.