How to Calculate Employee Vacancy Rate

Employee Vacancy Rate Calculator

Measure your organizational hiring health and workforce efficiency.

Used to estimate total recruitment budget needed.

Calculation Results

Total Workforce Capacity: 0

Employee Vacancy Rate: 0%

Potential Recruitment Cost: $0

How to Calculate Employee Vacancy Rate

The employee vacancy rate is a critical HR metric that indicates the percentage of unfilled positions within an organization relative to the total number of positions. A high vacancy rate may signal recruitment inefficiencies, while a very low rate might suggest a lack of organizational growth or stagnation.

The Vacancy Rate Formula

Vacancy Rate = (Number of Vacant Positions / Total Number of Positions) x 100

To find the Total Number of Positions, you simply add your currently filled roles to your open vacancies.

Example Calculation

Imagine a marketing agency that currently has 42 employees (filled positions) and is actively recruiting for 8 more roles (vacant positions).

• Step 1: Calculate Total Positions (42 + 8 = 50).
• Step 2: Divide Vacancies by Total (8 / 50 = 0.16).
• Step 3: Multiply by 100 to get the percentage (0.16 x 100 = 16%).

In this scenario, the agency has a 16% vacancy rate.

Why Monitoring This Metric Matters

Tracking your vacancy rate helps HR departments and business leaders understand several key factors:

1. Resource Allocation: High vacancy rates often mean existing employees are overworked, leading to burnout.
2. Recruitment Speed: If the rate stays high for months, it suggests your "Time-to-Hire" is too slow.
3. Economic Health: It helps in budgeting for recruitment costs and predicting future payroll expenses.
4. Benchmarking: Most industries aim for a vacancy rate between 3% and 5%, though this varies by sector (e.g., healthcare and tech often have higher rates).