The True Hidden Cost of an Open Role

The True Hidden Cost of an Open Role

Every position in your company exists for a reason: to produce measurable, tangible results.

When that seat is empty, your business is losing value by the hour. Let me explain how.

 

Let’s say:

 

  • The role has a salary of $150K/year (in tech/engineering, this is the median)
  • It’s been open for 90 days (which is common in today’s market)

Estimated cost of vacancy after 90 days? ➡️ $103,846

 

Here’s why:

 

On average, a fully-functioning employee produces 2x to 3x their salary in annual ROI.

So, every day the position goes unfilled, your business misses out on that potential return.

 

Simple formula:

 

(Annual Value of Role) ÷ (Work Days per Year) × (Days Open) = Cost of Vacancy e.g. ($300K ROI ÷ 260 days) × 90 days = $103,846 in lost value

 

And that’s not including:

 

  • The added workload on current staff, pulling them away from their core responsibilities (fast track to burnout)
  • The ramp-up period needed to get new hires to full productivity
  • Training, onboarding, and internal resource costs

 


Why Agency Recruiters Make Sense:

 

Hiring speed matters!
An experienced recruiter can help you reduce time-to-fill, improve hire quality, and minimize lost ROI.

 

Typical timelines:

 

  • Agency recruiter: 6–8 weeks time to fill (early as 4 weeks depending on the difficulty of the role)
  • Internal team: 11–13 weeks (while juggling other responsibilities)

 

If your role has been open for more than 4 weeks, it’s time to bring in reinforcements. Yes, agency fees are higher upfront, but they save you far more over time.

 

Here’s how:

 

Example ROI (Based on $150K Salary)

  • 30-day ramp-up to full productivity (some cases longer)
  • The break-even point is around month 7
  • Total value of role over 12 months:

 

a) At 2.7x ROI → $405,000

b) At 8.3x ROI → $1,245,000

(Recruiter fee (25–30% of $150K salary): → $37,500–$45,000 upfront)

 

Net Gain After Recruiter Fee

 

At 2.7x ROI:

  • Total value: $405,000
  • Minus fee: $45,000
  • Net gain: $360,000

 

At 8.3x ROI

  • Total value: $1,245,000
  • Minus fee: $45,000
  • Net gain: $1.2 million

 

Speed matters. Even with a higher upfront cost, working with the right recruiter protects profit, restores team bandwidth, and drives massive long-term value.

Even at the low end of the ROI scale, you’re seeing a net gain of $360K by year-end, not including avoided burnout, team retention, and the operational momentum regained by filling the role faster.

Hiring speed isn’t a luxury; it’s a measurable business advantage.