Study: Skills Gap Costing Companies Major Dollars

Study: Skills Gap Costing Companies Major Dollars

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A recent CareerBuilder’s study on the effects of the skills gap on the U.S. labor market shows the significant problem companies face when jobs are vacant.

The study, conducted online by Harris Poll, found that, on average, a company loses more than $14,000 for every job that stays vacant for three months or longer. One in six companies loses $25,000 or more.

More than half (54 percent) of employers included in the study have open positions for which they can’t find qualified candidates, and 35% of all employers have positions that stay open for 12 weeks or longer.

Employers cited compromised productivity and work quality and a rise in voluntary employee turnover among other consequences:

41 PERCENT: Lower morale due to employees shouldering heavier workloads
40 PERCENT: Work does not get done
34 PERCENT: Delays in delivery times
30 PERCENT: Declines in customer service
30 PERCENT: Lower quality of work due to employees being overworked
29 PERCENT: Employees less motivated
25 PERCENT: Employees making more mistakes, resulting in lower quality of work

One way to combat this is taking an active role to create the talent they need, according to the study.  Sixty-one percent have hired someone who didn’t meet all of their job requirements, helping that person to grow into the position, and almost half (49 percent) plan to train workers who don’t have experience in their industry or field and hire them in 2014, up ten percentage points over 2013.