What costs do companies bear for not filling the job position at the right time?

Employees are the backbone of any company; without keeping the backbone balanced it can’t stand straight. As we all know 80% of company’s growth depend on the employees.

When companies have long pending job positions it affects their employees in many ways, and also impacts it’s core business function and overall the entire company. The negative impact can be seen through employee performances, job satisfaction, productivity, teamwork and engagement.

Long pending job positions have impact at every organization level and its commitment:

As per the workforce center report:

1. At the lowest level, the inability to fill a vacancy can impact the closest group of co-workers, that have to fill in for the position, causing staff overload or stress.
2. At the intermediate level, it can impact the company financially by forcing it to pay temporary workers, contractors, placement agencies.
3. At an intermediate-high level, it impacts broader company operations such as the activities that determine business sustainability, as well as expansion and growth.
4. At the highest level, it can threaten the ability of a company to meet customer demand, meaning the core activities of a company. The effects would spill over and cause damage not only internally but externally to customers, suppliers, or the local community.

This report shows following commitment effects on the company, as a % of related cases of not filling a job in time.

Other internal and external impacts on the business:

More problems arise internally, such as role conflict, role ambiguity, lack of appropriate resources, workload mismatch, and also difficulty managing core business function activity due to insufficient staff.

As you can’t 100% focus on the core business function activity, it also impact business initiatives, and slowly company may fall behind in competition. Lack of the right people for the right task impedes the best product or service output, which can impact the brand value.

Influence on company’s culture:

When employees feel overworked due to insufficient staffing, it decreases company’s retention value and increases employee turnover. New employees don’t want to join such companies because of job withdrawal and work overload.

Overloaded staff also feel exhaustion, burnout, inefficiency, and cynicism. Exhaustion decreases product/service innovation, work quality, staff engagement, and efficiency in work etc. Burnouts not only affects the employee’s performance, but it also affects the performance of the team, the work environment and the business.

Insufficient staffing can easily lead to lack of trust by external stakeholders of the company.

What is RPO? How do companies benefit from RPO?

RPO means Recruitment Process Outsourcing. It’s a form of business function outsourcing, helping companies to offload a part or full execution of their functional activities related to talent hiring. This form of service enables clients to create efficient talent pipeline, hire the best talented employees and contractors to fill open positions, and fulfill related talent acquisition requirements in a cost, quality and time effective manner.

RPO objectives

RPO enables many flexible features, and benefits that help all size/types of companies to have customized hiring solutions fitting to their unique needs, allowing core HR team to narrow their focus on complex Human capital management.
• Reduce cost & time – save on hiring
• Scale up or down – as per need
• Dedicated hiring experts – modern recruiters
• Customized hiring solutions – as per need
• Lean recruiting team and structured process

Overall, RPO adds more value, structure, efficiency and alignment in companies’ hiring process. It helps companies improve their in-house recruiter accountability, quality of candidate and save time. Companies pay the price only for what part of service they used and optimize cost. 

RPO idea

80% of Companies’ success and growth depends on continuing innovation and leading the change in the areas of Research & Development, Product & Service Quality, Sales & Marketing, and Customer Satisfaction. To fulfill all these essentials, companies need the best employee base, management and leadership team who increases collaboration, mentoring support, and play a big role to make every teammate competent.

To build such a team you need the best recruiting support that assist sourcing, screening and hiring the best fitting talent on the team.

Transparency between recruitment agency and company is very important. It helps understanding actual talent acquisition need, market trends, and give a real idea of who, why and how to select best talent as per position’s actual need. RPO model is enabled by expert recruiters with such a focus on transparency and alignment with company’s talent needs.

New and small companies don’t have big hiring budgets, in house recruiting team, ATS (applicant tracking system) that tracks applicants to keep up with hiring needs, and necessary tools/techniques to find best talent for the team. RPOs provide best recruitment solutions, and fulfill hiring needs in a small recruiting price. It also helps big corporations to outsource part of their sourcing or any other sub step of recruitment process on a perpetual and scalable per-seat basis to achieve predictable outcome at predictable cost, and can scale up or down their investment forecasts.

RPO model is a pay per performance model that work according to predetermined goals and metrics. RPO service provider pay more attention on all recruitment service functions compare to a general placement or staffing agency. They work harder, then smarter to source best talent for their client. As RPOs are focusing on one or more recruitment functions only, and with the accountability fully retained through the proven outsourcing idea, makes them master in recruitment. To hire best candidate, recruiters need critical cross domain knowledge, sourcing skills and best selection experience to hire A player who keep team competent and focused to win.

To be the best at their trade, RPOs must bring this idea to work.


While it brings many unique features and benefits, RPO is not a set-it-forget-it solution. RPO provider requires your commitment for strategic partnership. It requires your time and support in early days of implementation to understand your requirement, strategy and culture. You should also be prepared to give it three to six months of time to achieve desired results – be it about cutting time-to-close to days instead of months, or hiring overheads to less than half, or to improve new positions to backfill positions ratio.


In today’s fast growing competitive business world your organization need external hiring support to stay competent in the market. You need modern talent acquisition model, and recruitment process to maintain competitive edge. Need best Recruitment support which provide consistency, scalability, and quality in your internal recruitment process. RPO is the best solution for the company’s human capital growth.

Is recruitment a strategy or a process/function?

No brainer? Yes, its both. However, the likely answer would be only one of the two choices depending on who is looking at it. Its a strategy for someone responsible for the bigger picture. Whereas, its a process for someone fulfilling a step within. Both are right! Yet, the rush of the day often keep those professionals in to their own silo of limited perspective. In fact, its easy to forget the obvious that strategy and process are like body and mind. One can not succeed without the other.

Recruiters, Hiring team, HR business partners and Executives, are all in need for a simple but effective implementation of this fact – its neither about the recruitment process nor the recruitment strategy ALONE! Everyone need a recruitment strategy and process that complement each other, without any analysis-paralysis like chicken first or egg!

Recent study conducted by Ethos, with 2 groups of 50 professionals each, responsible for recruitment strategy and recruitment process/function, showed that the organizations are in dire need of an integrated approach that’s not only easy to acknowledge but also easy to practice.

Ethos is further committed to weave such ground realities on an ongoing basis in to their HR Management and Recruitment related service solutions. Our experienced Ethos team of Recruiters and HR professionals are now spending 10% of their daily time in brainstorming and further customizing Ethos service solutions that delivers better business value through such practical challenges. Looking forward to sharing more updates from Team Ethos’ learnings!