How to Solve Open Job Roles!

How big is the impact of vacant permanent positions on your business? The answer isn’t big, but huge. Unfilled positions in the U.S. are estimated to be costing employers a staggering $1.08 trillion each month. This number is the result of many factors like project delays, lost productivity and reputation damage. So, how can you reduce costs and stay on schedule with projects, without allowing vacant positions to impact your business? 

Financial Impact

Lost revenue

The cost of an open job position can be as high as $25,000 per month on average, although this amount fluctuates depending on the industry and the specific role. If the job requires someone with extensive experience or specialised skills, leaving it unfilled will have a greater impact on the project than a junior role would.

Other factors can also influence the cost, such as whether the position is part-time or full-time, the location, and whether the role requires shift or weekend work.

According to an analysis by Fiverr Pro and Lightcast, 3.7 million jobs were posted across all industries in 2023, which leads to the $1.08 trillion lost in revenue each month. This loss can easily be solved with freelancers. Shai-Lee Spigelman, GM of Fiverr Pro, comments:

“Our research highlights a critical need for business leaders to revisit their approach to hiring, especially as we enter a new financial year for many. With significant loss of potential business output at risk, businesses should consider other hiring options, such as freelancers, to fill the skills gap and support the wider team to continue driving business output,”  

Fiverr provides the following breakdown of costs associated with some general positions:

• Computer & Math (e.g., Software Developers, Data Scientists): $42,458/month per open role
• Engineers & Technicians: $37,173/month per open role
• Business & Finance (e.g., HR, Marketing, Accountants): $33,800/month per open role
• Arts & Media (i.e., Artists, Designers, Media): $30,038/month per open role
• Legal (i.e., Lawyers, Legal Support): $48,902/month per open role

However, the last overview only provides the costs for one role. Open jobs have a more significant impact from a broader economic perspective:

• Computer & Math (i.e., Software Developers, Data Scientists): Open roles contributing over $120 billion in economic cost per month across 2.2 million open roles
• Business & Finance (i.e., HR, Marketing, Accountants): Open roles contributing $76 billion in economic cost per month across 1.7 million open roles
• Engineers & Technicians: Open roles contributing $49 billion in economic cost per month across nearly 1 million open roles
• Arts & Media (i.e., Artists, Designers, Media): Open roles contributing $19 billion per month across 485,000 open roles
• Legal (i.e., Lawyers, Legal Support): Open roles contributing $12 billion per month across nearly 189,000 open roles

The cost calculations of Fiverr Pro, from a broader economic perspective, clearly show that businesses are losing a significant amount of money due to unfilled permanent roles. This money could easily be invested in freelancers and other factors, such as improving work processes, to help advance organisations and projects. Even if you’re looking for a permanent employee, waiting for the right candidate will cost you, as an employer, every month, as demonstrated above.

Increased overtime

Increased overtime can have several negative effects on both employees and organisations, often proving more costly than anticipated. For example, overtime comes with many hard costs such as increased wages, pension contributions, and additional taxes. However, overtime does not always correlate with increased productivity. While it may initially appear to boost output, it often leads to diminishing returns over time. 

When employees work extended hours, their efficiency and decision-making abilities tend to decline as fatigue sets in. This can result in mistakes, accidents, and a drop in the quality of work. In the long run, the costs associated with higher turnover, recruitment, and training efforts may outweigh any short-term productivity gains. 

Furthermore, a culture of overwork can lead to disengagement and reduced overall organisational performance, as employees may feel undervalued or overburdened. Additionally, excessive overtime can put a strain on personal relationships and hinder employees from maintaining a healthy work-life balance.

Increased Turnover

Is the phrase ‘everyone is replaceable’ really true? Yes and no. You will always find a replacement if someone decides to leave, but it will cost you. Replacing an employee who leaves due to staff shortages and increased workload can be a costly process for a company. According to Propel HR, the cost of hiring a new employee can range from 1.5 to 2 times the employee’s annual salary, or approximately $1,500 for hourly workers. For executive roles, this figure can escalate even further, reaching up to 213% of the position's salary.

These expenses encompass a variety of factors, including the time spent by internal HR teams or recruiters, administrative overhead, and investments in hiring platforms and data tools. This represents only the internal costs associated with an unfilled vacancy. On top of that, external costs such as advertising and job listing fees also contribute to the financial burden of recruitment.

For workers, staff shortages often lead to burnout, stress, and a lack of work-life balance. When employees are pushed to work beyond their regular hours and workload capacity on a consistent basis, their physical and mental well-being can deteriorate. Chronic fatigue, anxiety, and reduced job satisfaction are common consequences, which may ultimately result in higher turnover rates. The solution to increased turnover is therefore: filling open vacancies with freelancers will ultimately benefit every employee.

Customer Impact

Open job roles can have a significant impact on customers, often leading to longer response times, reduced service quality, and an overall decline in customer satisfaction. When positions remain unfilled, the existing workforce is often stretched thin, forcing employees to take on additional responsibilities. This can result in slower response times to customer inquiries, delays in fulfilling orders, and an inability to address customer issues as promptly or efficiently as usual. Customers who experience such delays or feel their concerns are not being addressed properly may become frustrated, leading to a decrease in trust and loyalty towards the company.

Moreover, unfilled roles can affect the consistency and quality of customer interactions. Employees who are overworked and stretched across multiple tasks may struggle to maintain the same level of attention and care when dealing with customers, which can undermine the customer experience. As a result, companies may see an increase in customer complaints, negative reviews, and a higher churn rate. In the long run, the failure to adequately address staffing shortages can erode a company’s reputation, making it harder to retain existing customers and attract new ones.

Freelancers as Solution

In 2023, the number of freelancers in the United States reached approximately 64 million, according to Statista—an increase of 11 million compared to 2014. This growth highlights the expanding role of freelancers in the modern workforce, and businesses are increasingly tapping into this talent pool to meet their evolving needs. Freelancers offer much more than just a temporary fix for staffing gaps; they provide an added value that can enhance an organisation's operations in various ways.

One key advantage is that specialists can be brought on board much more quickly than traditional employees. Freelancers often have fewer barriers to entry, such as lengthy recruitment processes or relocation logistics, allowing organisations to address urgent needs without delay. Since freelancers are not part of the regular full-time workforce, they also represent a cost-effective solution for businesses. Companies avoid the ongoing expenses associated with salaries, benefits, and office space, which can be particularly advantageous for short-term or project-based work. 

Additionally, freelancers often bring a high level of expertise and experience to the table. Their deep knowledge of specific fields can help increase productivity, streamline decision-making, and improve overall project outcomes. Freelancers are typically highly motivated to deliver quality work, as their reputation directly impacts their future job prospects. Furthermore, freelancers offer a level of flexibility that traditional employees cannot. They can be hired on-demand, allowing businesses to scale their workforce up or down as needed for specific projects or peak periods, without the long-term commitment. This flexibility not only optimises resources but also ensures that organisations can adapt quickly to changing demands or market conditions.

How Can Amoria Bond Help Companies?

Amoria Bond progresses lives everywhere by rapidly filling both permanent and contract roles with specialists in niche sectors, reducing costs and delays in project deliveries.

With flexible contract options and extensions available, our global network of temporary workers delivers qualified, pre-screened candidates tailored to your specific needs—whether for short-term or long-term assignments.

Here is a general overview of the advantages of working with Amoria Bond:

• 48-hour contract delivery
• 360° staffing service solutions
• 14-day permanent delivery
• Building a pre-identified pool
• Broad network of niche specialists in Engineering, Technology, and Energy

Our recruiters assist you from the beginning to the end of the hiring process, and we can guarantee that our specialists will stay with your project until it’s delivered, allowing you to build a strong team with maximum efficiency and output.

Progressing Lives Everywhere

Amoria Bond is a specialised STEM recruitment organisation with more than 15 years of experience in Technology, Engineering, and Energy. We are active in over 42 countries worldwide, offering a wide range of staffing services.

Our company is driven by success-oriented staffing strategies, intensive training, and a value-led culture, which has resulted in more than 90 awards and accolades.

Contact us today so we can discuss how we can help reduce your costs and assist you in meeting strict project deadlines!