This Year’s Talent Shortage Is Costing Your Business More Than You Think
Picture a successful oil and gas company with a talent shortage. Several field service technicians have departed for greener pastures and those roles are not backfilled right away. Accordingly, more work gets distributed among the rest of the maintenance department. Because business is booming, work orders have increased but the staff shortage means there are delays in filling them. The result could mean dissatisfied customers and an overworked staff looking to move on. After all, the economy is booming, jobs are plentiful, and unemployment is at record lows. It’s a buyer’s market, so why should they stick around?
The bottom line is this: not filling a position can come with a hefty price tag, and it’s not just in dollars and cents. Are you willing to pay it? Can you afford to pay it?
Hefty Price Tag
Calculating the cost of open positions sheds light on how much money a company could expect to lose each day a position remains unfilled.
Formula: (Total Company Annual Revenue) ÷ (Number of Employees) ÷ 365 = Daily Lost Revenue
A company with $30 million in annual revenue with 100 employees will suffer a daily lost revenue rate of $822 per employee. According to assessment and video interviewing firm HireVue, the average time to fill a position in 2019 sits at 42 days, bringing daily lost revenue to a whopping $34,524 for just one open position.
Disengagement
A talent shortage also brings other repercussions to the workplace. They take the form of lost creativity and ideas; a diminished company culture brought on by overworked, stressed, and dissatisfied employees; lost leadership; and damage to the employer brand and lost customer satisfaction.
Gallup research found that on average, 17.2 percent of an organization’s workforce is actively disengaged, meaning that they are unhappy, unproductive and potentially toxic to other employees. Gallup determined that they cost an organization $3,400 for every $10,000 of salary, or 34 percent, meaning an actively disengaged employee with a $60,000 salary costs their company $20,400 a year.
Solution
One way to reduce employee disengagement and keep customers happy is ensuring your departments are adequately staffed with veteran talent. When you hire veterans, you gain a loyal employee who wakes up every morning ready to execute the mission at hand. Veterans are highly effective, with superior time management and multitasking skills. They also receive more high-technology training than their age-group peers and are better at using it across a variety of fields and tasks.
Bradley-Morris and RecruitMilitary can help solve your talent shortage with access to over 1,000,000+ military job seekers. The solutions they offer perfectly complement one another, providing a 360° approach to any employer’s hiring needs.
by: Katie Becker