Cost of Vacancy (COV) - The Hidden Cost of Open Roles in Manufacturing and Engineering

Yikes! Did you know that leaving a position unfilled comes with hidden costs? It impacts morale AND your bottom line. Thanks to our friends at Blackmere Consulting, LLC , there's now a tool that helps you quantify these costs, and the results are truly eye-opening. Curious? Test it out with one of your open roles!

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The manufacturing and engineering industries operate at full throttle, and every open role comes with an invisible price tag. Sure, you're saving on salary, but before you pop the champagne, remember: that unfilled position is quietly draining productivity, revenue, and even team morale. So, how much is that vacancy really costing your business?

Spoiler alert: It's probably more than you think. Enter the Cost of Vacancy (COV)—the reality check you didn’t know you needed.

Recently, Blackmere Consulting tackled this exact issue in their insightful article Stop Bleeding Money: The True Cost of Vacancy , offering an invaluable breakdown of how to calculate Cost of Vacancy (COV). Their analysis showed just how much businesses lose every day that a critical role remains open. COV for most roles can be a real eye-opener, and not in a "found-a-fiver-in-my-jacket" kind of way.

Why Every Day Matters

In highly technical fields like manufacturing and engineering, vacancies often span several months due to the specialized skill sets required. But those months represent more than just inconvenience; they translate to lost revenue and efficiency. Blackmere Consulting highlighted some stark realities of those vacancies. Let’s break it down further:

Decreased Productivity: As workloads are distributed among fewer people, projects often slow down. Important initiatives get delayed, and multitasking becomes more of a mess than a miracle, reducing the quality of output across the board.

Declining Morale: When one person leaves, it’s like musical chairs—but with extra work. Over time, this added pressure can lead to burnout, reduced productivity, and even higher turnover rates.

Lost Revenue: Each employee contributes directly to your company's success. When a revenue-generating role is vacant, your bottom line takes a hit every day that position remains open. As Blackmere’s analysis shows, the daily revenue lost due to vacancies can be startling.

Speed vs. Quality: Striking the Right Balance

When the pressure’s on, rushing to hire can seem tempting. But beware—the wrong hire can end up costing you more than the vacancy itself. It’s like putting duct tape on a leaky pipe. Sure, it’s a fix… until it’s not.

Blackmere Consulting pointed out the importance of balancing speed with candidate quality. Partnering with a specialized recruiting firm can help by ensuring both speed and quality. Think of us as your recruitment superheroes (minus the capes). Compared to internal recruitment teams, external recruiters swoop in with industry expertise, larger talent networks, and the ability to fill roles faster due to their specialized focus. The result? Open positions get filled quickly, reducing your cost of vacancy and improving overall company performance.

Why Choose Spectrum Recruiting Solutions?

While many recruiting firms can help speed up the hiring process, Spectrum Recruiting Solutions stands out for a few key reasons:

Local Expertise: We know the Utah talent market like the back of our hand. Plus, we’re well-versed in the quirks and challenges of recruiting for manufacturing and engineering companies in this region.

Industry-Specific Focus: Our dedicated team has a wealth of experience in the manufacturing/engineering sector, ensuring that we not only find candidates quickly but also present the best-fit candidates who meet your technical and cultural needs.

Long-Term Partnerships: We prioritize building strong, long-lasting relationships with our clients. By understanding your business inside and out, we tailor our recruitment process to match your company’s values, culture, and specific requirements. It’s like having an extension of your own team, minus the coffee runs.

What’s Your Vacancy Costing You?

For a closer look at the financial impact of your vacancies, Blackmere Consulting’s?Cost of Vacancy Calculator ?is a great tool to get started. Then, contact Spectrum Recruiting Solutions to find out how we can help you fill the critical roles at your manufacturing/engineering company.?