What is the Cost of Filling a Job Position?

HR Question:

We have an open position, but recruiting is competing with my other responsibilities. I know there’s a cost to hiring, but what is the cost of delaying the hire? When should I consider outside recruiting support so I can get the role filled quickly?

 HR Answer:

What most employers need to realize is that the biggest recruiting cost isn’t always recruiting. It’s vacancy.

Organizations often focus on what it costs to recruit someone while overlooking what it costs to leave a position unfilled. Every day a critical role remains vacant can impact productivity, customer service, employee morale, project timelines, and revenue generation. In many cases, the hidden cost of vacancy exceeds the direct cost of recruiting. For the hiring manager, time is also diverted from strategic priorities during this time as well.

Cost of a Job Vacancy

When a position remains open, the impact extends far beyond the missing employee. Existing team members often absorb additional responsibilities, managers spend time covering gaps, projects stall, and customers may experience service delays. A vacant position can impact:

• Revenue generation
• Customer service levels
• Employee workload and burnout
• Project timelines and deadlines
• Productivity and efficiency
• Institutional knowledge and continuity
• Overtime expenses
• Hiring manager time diverted from strategic priorities

Consider a supervisor earning $80,000 annually. If the position remains vacant for the national average of 54 days, the organization loses nearly 15% of that employee’s work year before the replacement even starts. During that time, direct reports may have less support, projects may move more slowly, managers may absorb additional responsibilities, and remaining employees may work overtime to cover the gap. The true cost of vacancy often extends far beyond the vacant employee’s salary.

The challenge is that these costs rarely appear on a recruiting budget or financial statement. Instead, they show up as missed opportunities, delayed initiatives, employee frustration, and reduced organizational effectiveness and employee engagement.

How Long Do Position Typically Remain Open

SHRM’s Recruiting Benchmarking Report  tells us that the average time to fill non-executive roles sits as 54 days. Time to fill measures the full stretch from requisition open to accepted offer. Where does that time typically go?

• Approval to fill: 14 days
• Posting and sourcing: 14 days
• Screening applicants: 8 days
• Conducting interviews: 9 days
• Offer and acceptance: 10 days

The largest delay often occurs before recruiting even begins. Budget approval, headcount authorization, and internal prioritization can consume weeks before candidates are ever contacted

Recruiting delays can also occur when hiring teams are stretched thin. Resume reviews, interview scheduling, candidate communication, and hiring manager feedback often compete with other business priorities. As a result, searches that begin with urgency can quickly lose momentum.

Considering External Resources

If the cost of vacancy is high, organizations should consider whether they have the internal capacity to support a timely search. While internal recruiting resources may be sufficient for some positions, difficult-to-fill or business-critical roles may warrant additional support. In addition, lean HR departments may just need an extra set of hands, someone to focus solely on getting the job filled while other tasks are handled.

Although external recruiting can be very cost-effective, it is important to note that the question is not always “Which option costs less?” but “Which option produces the best outcome given the urgency, difficulty, and importance of the role?” Consider these attributes as you consider internal or external resources for hiring.