According to the Government of Canada, Canadian businesses reported 468,000 job vacancies in the third quarter, up 62,000 from the third quarter of 2016. Of these 468,000 jobs, 80.2% accounted for permanent positions. In 2015, our friends at Deloitte completed a study that
found it takes 94 days to recruit for highly skilled roles and 70 days for skilled production workers. These numbers have significant impact on not only the businesses with vacant positions, but on the economy as a whole.
Year-over- year change in the number of job vacancies
Here are some of the major impacts that vacancy can have on businesses and the economy as a whole:
Lower Business Productivity
With vacant jobs, the overall productivity and output for an organization is significantly decreased. According to Deloitte, 82 percent of executives believe the skills gap will impact their ability to meet customer demand. They also believe it will impact their ability to
implement new technologies, provide effective customer service and innovate and develop new products and offerings.
Increased Pressure on Existing Employees
Vacant positions have a trickle-down effect on existing staff members in any organization. Regardless of the position being vacant, the work still needs to get done. This increased workload and pressure can result in employee burn out and loss of overall productivity amongst
your existing staff. Burn out can result in future problems including increased sick day usage, leaves of absence and resignation from positions, which only add to the bigger problem of job vacancy.
Rushed Recruitment Process
In our previous blog we highlighted that even an $8 per hour employee can end up costing an organization approximately $3500 in turnover costs. While the pressure to fill vacant positions is prevalent, it is still important that you are hiring the right person for the right job. If
employees are not properly vetted and do not fit the culture of the company, this can create long-term toxic effects to the organization as a whole. Deloitte estimates that six out of ten open skilled production positions are unfilled due to a talent shortage.
Stay On-Top of Your Recruitment
Don’t wait until a job is vacant to evaluate your recruitment process. It’s important to define your strategy in a proactive manner. At Intellidig, our entire Talent Acquisition Research methodology is built around in-depth research. We don’t merely scratch the surface, we keep digging until we find the right talent. Often, the talent you require to fill your position won’t be actively seeking employment. Our process helps you find the people who aren’t looking, while gaining access to a new pool of untapped prospects.
Interested in learning more about our process and finding the right people for your vacant positions?