How much are unfilled positions costing your organisation?

calculator on desk symbolising calculation of cost of unfilled positions

From the moment a vacancy in your organisation goes live, the costs begin to accumulate. While recruitment teams aim to move swiftly to minimise losses, it may not always run smoothly due to a range of factors, such as the hiring managers’ need to shift focus back to their daily tasks.

However, elongating the hiring process and leaving the position unfilled means that new efficiencies remain locked and organisational growth is hindered. The less urgency displayed to fill the vacancy leads to it being pushed further down the priority list and heightens costs for the organisation. In fact,  a Glassdoor review from 2017 reported that unfulfilled jobs advertised online was estimated at $272 billion.

How much is an unfilled position costing your organisation?

A simple formula can be used to estimate how much your organisation is losing on open vacancies:

(Annual profits / # of employees) / 220 working days. Take this figure and multiply it by the average number of days to hire to get the full estimate.

Where do you go from here?

Once you calculate how much an unfilled position is costing your organisation, you can assess just how quickly the opening needs to be filled in order to put your recruitment team, and the overall organisation, in a healthier position.

It can’t be overlooked, however, that other tasks for the recruitment department and deadlines looming for hiring managers doesn’t offer the best opportunity for success when seeking a new hire. To add fuel to the fire, candidates may often become restless within a slow-moving recruitment process, and lengthy waiting times can often result in candidates opting out of their application, looking elsewhere, and leading your recruitment team back to square one. It comes as no surprise that this results in further revenue loss.

So, what can you do to avoid this game of cat and mouse? Implementing the correct recruitment solution is essential when, quite literally, time is money! Seeking out top employees should be at the top of the list in today’s increasingly competitive recruitment market. Having a solution at hand to help locate top talent faster not only reduces competitive risk, but also allows you to bring candidates through the process quicker, filling the position with the most suitable candidate and simultaneously saving time and money for the organisation.


It’s no big news that one thing Video Interviewing is renowned for is allowing recruiters access to the best talent faster, all while having an incredible effect on your bottom line. But what other important ROI metrics for Video Interviewing should be assessed? Our webinar, 10 Tips in 10 Minutes: Measuring Video Interviewing ROI throughout the Recruitment Process, holds a multitude of insights on key ROI metrics. You can watch it here.

roi of video interviewing webinar cta

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Edward Hendrick
CEO
Ed holds a Bachelor of Science Degree in Agribusiness & Rural Development and a Higher Diploma in Enterprise Development and Entrepreneurship.

Since founding Sonru in 2007 with the vision of introducing Video Interviewing to mainstream recruitment, Ed has established the organisation as a global leader and one of the top recruitment SaaS companies worldwide.

With numerous accolades to his name such as the Sunday Business Posts ‘Top 40 Under 40’ and IIA Net Visionary award for innovation, Ed is recognised as one of the world’s leading experts in video recruitment technology and is a renowned industry speaker.

With a passion for new technology and how it can be used to make life easier for people in the real world, Ed has been instrumental in shaping the current landscape of the Video Interviewing industry.
Chris Horan
CTO at Sonru
Chris graduated from Trinity College Dublin with an Honours Bachelor of Science Degree in Physics and Computer Science and went on to complete a Postgraduate Diploma in Applied Science in Physics and Computer Science as well as a Higher Diploma in Enterprise Development.

With almost 20 years’ experience in the software engineering and computer science space, Chris has worked with leading technology companies such as Accuris, CAPE Technologies and BearingPoint.

Chris has been at the forefront of Sonru’s product development since the company’s inception in 2007.
Daniel Richard
Managing Director EMEA
Sonru’s Europe MD, Daniel Richard, graduated from Queen’s University, Canada with a Master of Science in Industrial and Organisational Science.

A trained Occupational Psychologist with more than 15 years of sales and consulting experience in multinational recruitment and HR services companies, Daniel leads Sonru’s sales efforts within EMEA, helping to grow its rapidly expanding customer base.

Prior to joining Sonru, Daniel spent 10 years at Oracle Taleo helping to build the company from a small regional start-up to a true industry leader. Daniel has held a variety of sales and consulting positions on various continents, including the US and Europe.
Fergal O'Byrne
Non-Executive Director
Fergal holds a Bachelor of Science in Electronic Engineering from Dublin Institute of Technology and is an experienced Internet industry entrepreneur.

Since founding Interactive Return in 1998, Fergal has been a member of the Board of Directors of IGOpeople.com, WINC, and CCD Limited and was a previous chair of the Project Advisory Group for Fáilte Ireland’s eBusiness Support Initiative.

A recognised influencer within the industry, Fergal has served as CEO of the Irish Internet Association and has published four books including ‘10 Online Marketing and Search Engine Essentials’ and ‘10 Technologies Every Executive Should Know’.

In 2015, Fergal was inducted into the IIA Internet Hall of Fame in recognition for services to the internet industry.
George Pennock
Chairman
George holds an MA in History from Oxford University and is a previous Partner and Head of Saphir UK at Saphir Capital Partners.

George spent several years with the Goldman Sachs Group as a mergers and acquisitions banker before moving into private equity where he has spent most of the past 15 years. He has served as a Senior Investment Manager and COO at Pi Capital, and worked with Botts & Company Ltd where he made private equity investments in the leisure, publishing, branded goods, retail, and technology sectors.

Having spent the past two decades working with a myriad of talented and unconventional entrepreneurs, investing in everything from online employee benefits platforms to river boats and book publishers, George is passionate about backing exceptional people and interesting businesses and believes that while a mediocre management team can ruin even a great plan, a great management team can make a success of almost any business opportunity.
John Penning
Director
Currently, I am a Director of Sonru, the leading Online Video Interviewing company. Previous career highlights include; CEO of the Irish Internet Association, Chairman of IGOpeople.com and Founder and CEO of Interactive Return. In 2015 I was very honoured to be inducted into the IIA Internet Hall of Fame in recognition for services to the internet industry.
Rodolphe Verhaegen
Non-Executive Director
Rodolphe is currently an Operational Advisor with Digital Ventures in Brussels having previously worked in Ebay, most recently as Director of Customer Innovation.

Rodolphe is an innovative and creative business leader, with a strong interest in technology and agile software development practices. He holds an Masters Degree in Business Information Management and a BA in Business Economics from the Vrije Universiteit, Brussels.
Georges Schmit
Non-Executive Director
A native of Luxembourg, Georges graduated with degrees in Economics from the University of Louvain, Belgium (BA) and the University of Michigan, Ann Arbor (MA). Besides his native Luxembourgish, Georges is fluent in French, English and German.

Georges served the Government of Luxembourg from 1981 to 2016 and throughout most of his career he focused on innovation and technology policy, economic development and trade and investment promotion.

During his time with the Government of Luxembourg, Georges served as Secretary General of the Luxembourg Ministry of the Economy and was a member of several European Union high-level advisory bodies including the European Commission's "Enterprise Policy Group”. He also served as both Vice-Chairman and Executive Chairman of the National Credit and Investment Corporation (SNCI) of Luxembourg.

Georges has served on the Board of Directors of both listed and private companies including the world's largest steelmaker ArcelorMittal, the Luxembourg-based global satellite operator SES, the Luxembourg Post and Telecommunications Company, and the Luxembourg State and Savings Bank, among others. Most recently, he contributed to the design and launch of several major Luxembourg Government innovation policy initiatives and sits on the Luxembourg Government’s Advisory Board on Space Resources.
Clément Helinckx
Non-Executive Director
Clément is a member of the Saphir Capital Partner's Team. Clément worked at PwC Luxembourg for 6 years in Private Equity Audit and then as Manager in the Corporate Finance practice in Valuation, Buy-side and Sell-side advisory. He holds a MSc from IÉSEG School of Management.

Patrick Sweeney
Non-Executive Director
Patrick holds a Bachelor of Business Studies Degree in Accounting, Management, Human Resources, Marketing and Economics from University of Limerick as well as Masters of Education in Management, Human Resources and Training and Development from University of Sheffield.

For 25 years, Patrick held the position of Human Resources and Public Affairs Director for Aughinish Alumina where he was involved in change management, restructuring and international mergers and acquisitions.

Patrick also undertook many other leadership roles including operations management, training and development and employee relations management. In addition to sitting on the Board of Directors at Sonru since 2011, Patrick has operated his own strategic management and human resources consultancy firm for the past 8 years.