What is Vacancy Rate?
A vacancy rate shows the percentage of available positions that remain unfilled compared to the overall number of positions in the organisation. It indicates how well the company recruits, retains, and hires the talent it needs to fulfill its objectives. Since it can offer insightful information about the general health and performance of a business, the vacancy rate is an important indicator considered by HR professionals. Vacancy rates are generally used in the employment sector and real estate analysis. A company with a high vacancy rate faces several difficulties such as overpaying existing employees and decreasing level of customer satisfaction which can ultimately lead to a loss. On the other hand, low vacancy rates signify that a company has a competitive advantage over a company that has high vacancy rates.
Geeky Takeaways:
- The vacancy rate can be defined as the percentage of all available job positions within an organisation, that are vacant or unoccupied at a given time.
- It helps the organisation identify any prospective skills gaps and plan for the future.
- It can also determine the effectiveness of the recruitment process.
- The large number of open positions, and overloading existing employees result in additional costs for the company.
- A greater number of vacancies has an adverse impact on customers’ confidence and trust in the company.
Table of Content
- Characteristics of Vacancy Rate
- How to Calculate Vacancy Rate?
- Examples of Vacancy Rate Calculation
- Disadvantages of High Vacancy Rates
- How Much Does a Vacancy Cost?
- Conclusion
- Frequently Asked Questions (FAQs)