Cost of vacancy calculator
Use our free calculator to estimate the opportunity cost of vacant positions based on factors like company revenue, employee count, and vacancy duration. Use the sliders to adjust settings for your organization.
Did you know that according to the Society for Human Resources Management (SHRM), the cost to hire a new employee can be three to four times the employee’s salary? That cost only increases the longer a position remains open. Drastically reduce your time to hire when you partner with NerdRabbit for cloud talent solutions. We’ll deliver qualified candidates ready to interview in as little as 24 hours.
What is cost of vacancy?
Cost of vacancy (COV) is the opportunity cost of unfilled positions. COV is the difference between benefits and payroll savings minus hard and soft costs—like loss of revenue, productivity, and employee morale—from not having that employee. This is one metric recruiters use to help them prioritize hiring.
How to calculate cost of vacancy
On the surface, the formula for calculating cost of vacancy for tech employees appears simple. But there’s a little more math going on behind the scenes. Benefits and payroll savings are straightforward, but determining hard costs like lost revenue varies by role.
Every employee contributes to revenue to some extent, but some roles—like those in sales or technology—impact revenue more directly. Before calculating cost of vacancy, do some upfront due diligence to estimate each employee’s contribution to gross revenue.
What is the best way to recruit tech employees?
If you’re recruiting tech talent, you’ll need a way to manage job postings, talent sourcing, and job applications. Many organizations use an applicant tracking system (ATS) to handle some of these functions, but this is only one piece of the puzzle.
Recruiting tools like LinkedIn Recruiter and ZipRecruiter are essential tools for many recruiters. It’s also a good idea to utilize tech freelancing sites and recruitment agencies that specialize in tech.
Tech recruiting strategies
Offer remote work
Many workers now expect their employers to offer options for remote work, and that’s especially true among tech workers. If you can’t offer fully remote options, aim for offering hybrid work accommodations.
Create an inviting and inclusive work environment
Focus on building a company where people want to work. Part of this will of course be your company’s mission or vision, but employees increasingly care more about working for companies that invest in fostering a healthy and supportive workplace that includes all kinds of people.
Find creative ways to be competitive
In a tight labor market, it can be hard to compete with deep-pocketed companies on compensation. Instead, focus on highlighting policies like minimum PTO, flexible scheduling, mentorship programs, and clearly defined opportunities for career growth. If possible, you can also offer alternate forms of compensation, like profit sharing or equity in the company.
External vs. internal recruitment
|Yes||Specialized by industry or field of work||Maybe||Specialized by industry but not field of work|
|Yes||Flexible with shifting hiring demands||No||More rigid in responding to changing hiring demands|
|Yes||Able to focus heavily on difficult hires||No||Unable to devote full attention to filling difficult positions|
|Yes||Agility with urgent hiring||No||Better-suited for less urgent hiring|
|Yes||Specialized by industry or field|
|Yes||Flexible with shifting hiring demands|
|Yes||Able to focus heavily on difficult hires|
|Yes||Agility with urgent hiring||Internal|
|Maybe||Specialized by industry but not field of work|
|No||More rigid in responding to changing hiring demands|
|No||Unable to devote full attention to filling difficult positions|
|No||Better-suited for less urgent hiring|
Why customers choose NerdRabbit for cloud talent solutions
We’re more than just a cute bunny logo. View our recent case studies to find out for yourself why companies trust NerdRabbit for their cloud talent needs.
“Overall, our experience with NerdRabbit was very positive. We will certainly look to re-engage NerdRabbit’s services for future projects.”
“[Working with NerdRabbit] proved to be a cost-effective and efficient approach, enabling us to better serve the client and positioning us for future success with key accounts.”
“NerdRabbit delivered on their promise, and we are poised to continue growth in our platform.”
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