The Five Digit Value of Vacancy
So, how valuable is talent? One way to answer this question, is in those cases where key position staff leaves the company and the vacancies that creates. Is your key position management approach up to speed? Do you have qualified staff trained and ready to fulfil the vacancy?
In situations like this, companies often rely on the open market. And maybe in these lukewarm economic times this makes some sense. Aren’t there enough (over)qualified talents available? True as this may be, this doesn’t factor in the costliness to onboard new talent into the organisation.
There are quite a few exit calculators available through the internet and they paint an expensive picture. The most exhaustive calculator
I was able to find, tabulates a total of 19 costs in three categories: cost factors for the department that holds the vacancy, cost factors for HR and other costs. I’ve taken the liberty of calculating the exit costs of a mid-level manager, with a Eur 6.000,- monthly salary, where her exit leaves a three month vacancy that requires temporary hire. Including advertising and assessment costs the sum total of this exit comes to Eur 196.500,-
You’re right to point out that this is a six, not a five, digit value of (one!) vacancy. I’ve downgraded my business benefit claim, based on the metrics of non talented, managerial and junior high-potential employees.
So, dear colleagues in HR, have you taken the time and liberty to calculate this ROI on talent for your business leaders? You might be surprised that setting up a top notch talent management and talent development effort delivers a sustainable business benefit. And this is exactly the language our business leaders long for us the speak.I would be thrilled if you’d sign up for our newsletter. Let’s share the power of knowledge.
Evert Pruis and Wendy TwiskROI on TalentROI on Talent sees organisations massively wasting their talents, simply because they’re not being addressed. For this reason we focus on line managers who wrestle with this waste within their team. It is our mission to help them utilise their team’s talents in an innovative manner. Our approach achieves an immediate cost saving of at least € 26,000.- per vacancy that’s fulfilled with internal talents. Moreover the business results increase with up to 15%. Guaranteed!