The cost of a vacant position is far more than the salary you’re not paying. Between lost productivity, overtime for employees covering the gap, and slower service for the people who depend on that role, an open seat can cost an organization thousands of dollars per week it remains unfilled.

Understanding that full cost — not just the price of recruiting — is what makes the strongest case for filling roles quickly and budgeting realistically for the time it takes to do it well.

What Counts Toward the Cost of a Vacant Position?

The cost of a vacant position consists of direct and indirect costs. Direct costs are the ones most organizations already track. Indirect costs are the ones that quietly add up and rarely make it into a budget line.

• Direct: job postings, recruiter or agency fees, advertising, background checks and screening
• Indirect: lost productivity or output from the empty seat, overtime or overwork for the employees covering the gap, slower service delivery, missed deadlines on time-sensitive programs, and the ramp-up period once someone new starts

What Does the Data Say About Hiring Costs?

It helps to separate two numbers that often get blended together: cost per hire and cost of vacancy. Cost per hire is what it takes to make the hire — recruiting, screening, interviewing. According to SHRM’s 2025 Benchmarking Report, the average cost per hire for a non-executive role is $5,475.

That figure doesn’t include what the organization absorbs while the seat sits empty. Once lost productivity, overtime, and coverage costs are added in, the total cost of an extended vacancy frequently exceeds the cost of the hire itself — which is why both numbers matter when planning for an open role.

A Simple Formula for Calculating the Cost of a Vacant Position

You don’t need a complex model to get a useful estimate. A straightforward version of the calculation looks like this:

1. Find the role’s daily fully-loaded cost (salary plus benefits, divided by working days per year).
2. Estimate the percentage loss in productivity while the seat is empty — even with coverage, most roles operate at a fraction of normal output.
3. Multiply daily cost by the productivity loss percentage by the number of vacant days.
4. Add any overtime or temporary coverage costs paid to keep the work moving.
5. Add direct recruiting costs to get the full picture.

Why Government Agencies Feel Vacancy Costs More Acutely

In government-funded programs, an open seat doesn’t just cost money — it can put program continuity, service-level commitments, and compliance deadlines at risk. Roles tied to a specific contract or grant cycle often can’t simply wait for the ideal candidate, and service demand doesn’t pause while a search continues.

That combination of urgency and mission-critical work is exactly where the true cost of a vacancy shows up fastest — in strained teams, missed reporting windows, or reduced service to the public.

How to Shorten Time-to-Fill (and Lower the Cost)

The most direct way to reduce the cost of a vacancy is to reduce the time it stays open. A few approaches consistently help:

• Work with a staffing partner that already has a vetted, credentialed candidate pipeline for your industry
• Scope the role clearly upfront so the search targets the right candidates the first time
• Offer a competitive, consistent benefits package — it reduces declined offers and early departures, which shortens the effective time-to-fill
• Use temporary or contract coverage as a bridge while a permanent search continues, so the cost of lost productivity doesn’t compound

FAQ

Is cost of vacancy the same as cost per hire?

No. Cost per hire covers what you spend to make the hire. The cost of vacancy covers what the empty seat costs the organization while the search is underway. Both are worth calculating and adding together for the full financial picture.

How long does it typically take to fill a role?

Time-to-fill varies significantly by role type, industry, and location, and benchmarks shift from year to year. It’s worth checking current data for your specific role category rather than relying on a general rule of thumb.

If a role on your team has been open longer than expected, ATHENA Consulting can help you estimate its actual cost and develop a plan to fill it more quickly. Contact us today!