How much does hiring a manager cost?
Two costs add up. The direct cost is the fees of a search firm or, if you recruit on your own, job ads and your teams' time. At Volta Executive, fees are 25 % of the annual gross package for a single position, 23 % per position from two similar positions entrusted together. The indirect cost is the empty seat during the search: hiring a manager took 12 weeks on average in 2024 (Apec, Pratiques de recrutement de cadres 2025). With the simulator's default assumptions, each month a manager position paid €55,000 gross a year stays vacant costs about €16,000.
How much does a vacant position cost?
The simulator starts from the employer cost: gross salary multiplied by 1.4. Insee measures 43.7 % in contributions and other employer costs on top of gross salary in 2022, so 1.4 stays slightly below. The position is assumed to produce 2.5 times that cost over a year, a Volta assumption you can change. Divided by twelve and weighted by the level of the position, this gives the cost of one month of vacancy: about €16,000 for a manager at €55,000 and €47,000 for an industrial site director at €100,000.
How much does a hiring mistake cost?
The simulator multiplies the gross annual salary by 1 for a technician, 1.5 for a manager and 2.5 for an executive. These multiples are Volta assumptions and can be adjusted. They sum up the salaries paid to the wrong person, the cost of their exit, lost output and the next hire. A published benchmark: the SHRM Foundation puts the total cost of a departure at between 90 % and 200 % of annual salary (D. G. Allen, Retaining Talent, 2008). Our executive multiple sits above that range. For an industrial site director on €100,000, the mistake costs €250,000 with the default assumptions.
How can you reduce the cost of a hire?
Act on the two figures in the simulator. To shorten the vacancy, start the search as soon as the departure is announced, without waiting for the exit date, and set your decision criteria before you see the first candidate. To reduce the risk of error, describe the results expected at twelve months rather than a typical profile, check references and prepare onboarding. Your network also shortens the search: in the most recent executive hire of 2024, the successful candidate was already known to the company or referred in 41% of cases (Apec, 2025).
When should you call on a recruitment firm?
As soon as the expected vacancy costs more than the fees, or when the profile does not respond to job ads. With the default assumptions, a single month of vacancy for a manager on €55,000 costs about €16,000, more than the €13,750 in fees at 25% of a €55,000 package. In 2024, 47% of companies with 10 or more employees that hired a manager used an intermediary for at least one of those hires (Apec, 2025). Volta Executive recruits managers and executives in the energy industry through direct search, with a 3-month replacement guarantee, extendable to 6 months.
What does a bad industrial director hire really cost?
No French public statistic measures it. The SHRM Foundation estimates the total cost of a departure at between 90% and 200% of annual salary (SHRM 2008), and that benchmark counts neither delayed projects nor lost clients. It includes the salary and charges paid, recruiting the replacement, management time and the team's lost productivity.
What are the hidden costs of a bad hire?
Seven costs come up: (1) demotivation of the existing team, (2) the departure of other key managers, (3) poorly managed projects and degraded quality, (4) a damaged employer image for later hires, (5) management time spent on recruitment and then on handling the failure, (6) delayed growth, (7) a tense social climate.
How do you prevent a failed industrial director hire?
Five levers: (1) 1 hour of scoping with the future manager and a scorecard of expected results, (2) a full assessment of finalists against that scorecard, (3) an outside view, that of a firm that knows the trade, (4) a 90-day integration follow-up with the executive hired and their manager, (5) an assignment given on an exclusive basis, so the market hears a single message. At Volta Executive: 96% success rate across 120 assignments analysed between 2023 and 2025, Volta Executive and previous firms.
Can an industrial director be replaced without new fees?
That is the role of the replacement guarantee, a standard clause in executive search. Volta Executive: 3-month guarantee, extendable to 6 months. If the executive hired leaves the role or the probation period is terminated, the search is restarted at no new fee. The exclusions are set out in the general terms and conditions of sale.