Filling a staff vacancy could cost companies over £30,000, according to new research. Oxford Economic and Unum have found that replacing a staff member in the media, retail, legal, accountancy and tech sectors that earn more than £25,000, can cost a business around £30,614.
Financial impacts for firms seeking to replace staff that have left could be huge, meaning that workforce management systems should be implemented to put a higher focus staff development and employee retention. Ensuring that staff feel happier in their jobs and have good opportunities for development within the company can help improve all round productivity and mean that workers stay on for longer periods of time.
The amount of money it can cost a company to replace staff is based on the output that is lost while the new member of staff is getting used to the business and role, as well as the cost of advertising and recruiting.
According to the report, new employees take an average 28 weeks to reach the usual levels of productivity, meaning that a single person getting to grips with a new job can cost an employer £25,181. On top of this, advertising, agency fees and the interview process costs around £5,433.
While better staff training can help new hires to reach optimal levels of productivity faster, retaining staff that have already been trained and understand the job will help to cut costs further.
Linda Smith, HR director at Unum, said: “I would encourage businesses to place more emphasis on retaining talent and developing good staff to reduce the cost of staff turnover. Put simply, people stay with companies that demonstrate they value and care for their employees.”
Other factors were also found to affect the cost of filling a vacant position within a company. The size of the business is a factor, as those that are hired by a smaller firm become familiar with the roll and operations faster than those hired by a big business. The type of sector will also affect cost, as will the industry that the new member of staff has come from.
