VACANCY RATE
Vacancy Rate
Job vacancy refers to a paid employment position that has recently been created, is currently vacant, or has been terminated. The important metric that reflects the percentage of open positions in a company over a given time period is called the Vacancy Rate.
Insights into the organizations workforce management, recruitment efficiency, and overall health can be gauged through the vacancy rate. High Vacancy Rate indicates potential issues in recruitment, employee retention, or organizational health. Low Vacancy Rate suggests efficient HR operations and an organization that attracts and retains talent effectively.
- Costs Associated with Vacancies
- The expenses related to recruiting, onboarding, and training new employees.
- Current employees may need to work overtime to compensate for vacant positions.
- Overtime pay adds to the operational costs of the organization.