When a position in your organization goes unfilled, instead of saving money, you’re likely losing revenue. What’s worse, the true cost of that empty desk could be much more severe than you’ll find on a balance sheet.
We at Payday Staffing have worked with hundreds of businesses such as yours to overcome the potentially crippling costs of a vacant position. Don’t think it’s so bad? Take a gander at:
Empty Desk Costs #1: Calculate an empty desk’s daily lost revenue. Let’s start with the easy stuff first: how much revenue per day does an empty desk cost?
- Step 1 Calculate annual revenue per employee by dividing your annual revenue by the number of employees you have.
- Step 2 Calculate daily revenue per employee by taking your annual revenue per employee and then dividing it by 250 (average number of work days per year) to get your daily revenue per employee.
Empty Desk Costs #2: Lost Revenue. Multiply daily revenue per employee by the number of days that position remains unfilled.
Nationwide, the average job position is vacant for 33 days.
So take your daily figure and multiply by 33. This is just the easy balance sheet calculation of lost revenue. That’s just to get someone halfway decent behind that desk. We aren’t even talking about how long it takes them to gear up and be productive at their job.
Empty Desk Costs #3: The cost of unused equipment. Think about the money you’ve invested in the office space, furniture, and equipment for an employee that isn’t there.
Empty Desk Costs #4: Lost efficiency of people performing one and half jobs. Most jobs require focused attention. Asking an employee to do one and a half (often quite different) will result in more absenteeism and sick days.
If you allow the situation to last too long, frustrated employees will leave your company in droves.
Empty Desk Costs #5: Managers can’t manage it. A manager tasked with overseeing and motivating such a workforce has their back against the wall. They can be just as overwhelmed.
Empty Desk Costs #6: The customers will notice before upper management does. An overworked workforce will drop the ball more frequently. Customer service takes a direct hit. If the situation is allowed to continue your customers will leave, writing scathing online reviews on their way out the door. That’s sure to hurt revenue.
Empty Desk Costs #7: Your competition will sense your weakness and attack. Like a shark on chum, your competition will smell blood in the water and embark on a feeding frenzy.
Don’t let that vacant position eat away at your revenue. We’re experts in serving the unique needs of organizations like yours.
Offer: Hire the first eight hours for free*. We are so confident that you will love Payday HCM Staffing Solutions, we will comp a full day, up to eight hours, on any one regular temp-to-hire order or temporary help order (with a minimum of a two-week assignment).
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*Offer limited to one per company. Expires August 31, 2016. Free temp/temp-to-hire is valid for up to eight hours of temporary/temp-to-hire service by an accounting, administrative, clerical, or customer service position.