Calculating The Cost of Vacant Tech Positions Dice 2017

Calculating the cost of vacant tech positions in 2017 using Dice data involves analyzing the financial impact of unfilled technology roles. This guide explains the methodology, provides a calculator, and offers practical insights for understanding and addressing vacant positions in the tech industry.

Methodology

The cost of vacant tech positions is calculated by considering several key factors from the Dice 2017 data:

Average salary for the position
Duration of vacancy
Opportunity cost of lost productivity
Recruitment and hiring costs

Formula

Total Cost = (Average Salary × Vacancy Duration) + (Recruitment Cost × Vacancy Duration) + (Lost Productivity Cost × Vacancy Duration)

Assumptions

This calculation uses the following assumptions based on Dice 2017 data:

Recruitment cost is typically 20-30% of the position's annual salary
Lost productivity is estimated at 10-20% of the annual salary per month of vacancy
Average tech salaries in 2017 ranged from $70,000 to $150,000 depending on position and location

Note: These calculations are estimates based on industry averages. Actual costs may vary significantly based on specific company circumstances and market conditions.

Example Calculation

Let's calculate the cost of a vacant senior software engineer position:

Average salary: $120,000/year
Vacancy duration: 3 months
Recruitment cost: 25% of annual salary ($30,000)
Lost productivity: 15% of annual salary per month ($18,000/month)

Calculation

Total Cost = ($120,000 × 3) + ($30,000 × 3) + ($18,000 × 3) = $36,000 + $90,000 + $54,000 = $180,000

This example shows that a 3-month vacancy for a senior software engineer position could cost $180,000 in salary, recruitment, and lost productivity.

Comparison of Vacant Tech Positions

Here's a comparison of estimated costs for different tech positions based on 2017 data:

Position	Average Salary	3-Month Vacancy Cost
Junior Developer	$80,000	$96,000
Senior Developer	$120,000	$180,000
Project Manager	$100,000	$150,000
Data Scientist	$130,000	$204,000

FAQ

What is the most common reason for vacant tech positions?: The most common reasons include skill gaps in the workforce, high turnover rates, and difficulty in finding qualified candidates.
How can companies reduce the cost of vacant positions?: Companies can reduce costs by improving internal hiring processes, offering competitive salaries, and investing in employee development programs.
Is the cost of vacant positions the same across all industries?: No, the cost varies by industry. Tech positions typically have higher costs due to higher salaries and specialized skills requirements.
How does the cost of vacant positions affect company performance?: Vacant positions can impact productivity, innovation, and customer satisfaction. Addressing vacancies promptly is crucial for maintaining business performance.