Open positions and high employee turnover can bring substantial costs to a business, extending far beyond immediate expenses. Every unfilled role represents lost productivity, increased workloads for existing employees, and potential delays in reaching company goals, all of which affect the bottom line.

The Cost of an Open Position

When a position remains vacant, the impact can ripple through the company, affecting efficiency and morale. According to the Society for Human Resource Management (SHRM), the average cost to fill an open role is around $4,100, covering expenses like job postings, screening, interviewing, and onboarding. This does not include indirect costs, such as longer project timelines and lower productivity, as employees cover the workload left by the vacancy. In customer service or client-facing roles, unfilled positions can also impact customer satisfaction.

To estimate the cost per hour of an open position, if we consider that the average Time to Fill for non-executive roles is approximately 44 days (according to SHRM’s Talent Access Benchmarking Report), this translates to about $98 per day, or roughly $12.25 per hour. As time-to-hire stretches, these costs grow, leading to slower growth and risking disruptions to customer service and project timelines. Certain specialized roles can be particularly costly to leave vacant, as finding qualified candidates in competitive industries may require added recruiting time and resources.

The High Cost of Employee Turnover

Turnover introduces another significant expense. Losing an employee can often cost up to 1.5 to 2 times their annual salary on replacement costs, as estimated by PropelHR. These costs encompass recruitment, onboarding, and productivity losses, as it typically takes time for new employees to reach full performance. In roles that are customer-facing or require specialized skills, the impact can be even more pronounced, affecting both internal morale and customer experience.

For hourly employees, the costs may average around $1,500 per turnover event. These expenses accumulate quickly in high-turnover fields like retail or hospitality, creating a financial strain for businesses as they manage frequent hiring and training cycles. Repeated turnover cycles put pressure on managers and HR teams, impacting broader business stability and growth potential.

How CandidateView Can Help Manage Hiring Costs

CandidateView’s video interview platform helps businesses tackle the challenges of open positions and high turnover by streamlining the hiring process. By utilizing asynchronous video interviews, companies can efficiently prescreen candidates, allowing them to focus on the most promising applicants for in-person interviews. This approach significantly reduces the time it takes to fill open roles, minimizing lost productivity and associated costs.

Moreover, CandidateView enhances retention by providing deeper insights into candidates’ personalities and interests. This helps employers make informed hiring decisions that align with company culture and role expectations, reducing the likelihood of turnover. By ensuring a better fit from the start, businesses can maintain a more stable workforce and mitigate the costs associated with frequent hiring and training cycles.