Hiring — or not hiring — someone is one of the most critical decisions an employer makes. And sometimes, it’s also the costliest. After all, hiring people is expensive, and that’s the case even if you ultimately make the correct choice. Check out these statistics from the job board site Zippia, which shows positions in all occupations, not just the veterinary profession:
- The average cost per hire is $4,700.
- Filling the average position in the United States takes 36 to 42 days.
- Hiring an employee with benefits costs up to 40% of the base salary.
Once again, those costs are tied to successfully hiring someone in a relatively short time frame. And indeed, more than a few animal health and veterinary employers would love to fill an essential job in as little as 36 days.
However, what if you can’t find someone within 36 to 42 days? According to Zippia, the average vacancy costs employers $4,129 over 42 days. That amount breaks down to just over $98 a day and doesn’t include the $4,700 spent on completing a successful hire.
One can argue that the cost of leaving a position open in the animal health and veterinary professions is higher. In a phone call with a client of mine, I heard that each veterinarian he hires typically brings in about $400,000 a year. At the time of the conversation, he mentioned that he needed to find and hire eight veterinarians. He said his organization would generate about $3.2 million in revenue over 12 months if he could do so as fast as possible. Needless to say, the executive was motivated to hire someone quickly.
Here are six other costs associated with leaving a position open, some less readily apparent.
1. Increased Workload and Reduced Productivity
One immediate repercussion of a vacant position is the need for existing employees to do more work. The additional responsibilities and tasks can lead to stress, burnout and decreased productivity. As employees struggle to manage their workloads alongside extra responsibilities, they might have trouble meeting deadlines and maintaining standards. The decline in productivity can harm the efficiency and effectiveness of the entire team or veterinary practice.
2. Lower Customer Satisfaction
A vacant position can lead to delays in services for customers and pets, reducing satisfaction. When employees are stretched thin due to increased workloads, they might not provide the same levels of attention, care and quality service as they would in a fully staffed team. The decline in customer satisfaction can have long-term consequences as displeased clients take their business elsewhere, damaging a clinic’s reputation and revenue.
3. Missed Business Opportunities
As employees struggle to manage workloads, they might be unable to take on new projects or initiatives. The problem could lead to delayed product launches, missed deadlines, and lost contracts or partnerships. In addition, the absence of specialized skills or expertise might hinder an organization’s ability to explore new markets or capitalize on emerging trends, thereby limiting growth.
4. Poor Morale and Turnover
The extended absence of a team member can hurt employee morale and job satisfaction. Existing team members might feel overworked, undervalued and demotivated, leading to increased turnover. The departure of experienced employees can further exacerbate the problem, as their knowledge and skills leave with them. High employee turnover results in additional recruitment and training costs and the loss of institutional knowledge, disrupted team cohesion and impeded organizational progress.
5. Upset Cultural and Team Dynamics
Every clinic has unique dynamics and culture. Those attributes are disrupted when a position remains vacant, leading to potential conflicts and decreased collaboration. Team members might become frustrated due to the lack of support or continuity, adversely affecting teamwork and the organization’s culture. A prolonged vacancy can create a sense of instability and uncertainty, which might cause talented employees to seek opportunities elsewhere.
6. Higher Recruitment Costs
Leaving a job open for an extended time can necessitate renewed recruitment efforts — advertising the position, conducting interviews and doing background checks. The longer a job goes unfilled, the more time and resources that are required to attract suitable candidates.
Remember the executive who said each veterinarian he hires brings in about $400,000 a year? Well, missing out on that revenue doesn’t include the other costs of not filling the job opening. Add everything up and you can see why the cost of leaving a position open can be overwhelming.
Companies in today’s job market, especially in the veterinary profession, face stiff competition for job candidates. Here’s what I suggest for ensuring that your veterinarian position doesn’t remain vacant too long:
- Be proactive. Don’t wait for candidates to come to you. They might not. Instead, be aggressive with your recruiting and hiring efforts.
- Be engaging. Ensure you frame the opportunity in an attractive light, highlighting what’s in it for candidates.
- Be decisive. If you’ve found a great candidate, don’t delay. Make an offer and quickly.
- Be generous. The law of supply and demand says don’t lowball a top-drawer candidate.
- Be aware. Once a candidate accepts your offer, your job isn’t done. Now you must onboard the person successfully.
Veterinary employers that wish to remain competitive today and for the remainder of the decade must prioritize engagement and the candidate experience, be proactive in their recruiting endeavors and be aggressive in talent identification and acquisition.
HELP WANTED
According to a U.S. Chamber of Commerce report from mid-August, “If every unemployed person in the country found a job, we would still have around 4 million open jobs.”