The Real Cost of a Vacant Position: Why It’s Time to Hire a Worker, Whether Local or International

By Karim Mouldi

A few weeks ago, I had to get my vehicle repaired. Nothing serious, just a routine mechanical repair. The problem was that the first available appointment was three weeks away.

This isn’t a scheduling problem. It’s a symptom of the critical shortage of skilled labour facing mechanical and collision repair shops across Quebec.

The Real Cost of a Vacant Position

When we think about a labour shortage, we tend to think about customers who have to wait. But as a shop owner, you also need to consider the opportunity cost of every position that remains unfilled.

Let’s take a collision repair shop as an example. A skilled collision repair technician generates approximately $600,000 in annual sales. With a net profit margin of 3% to 4%, that represents between $18,000 and $24,000 in net profit per year from that position alone. Every month the position remains vacant means between $1,500 and $2,000 in lost profit, not to mention the appointments that have to be turned away and the additional pressure placed on the rest of the team.

Recruitment is not an expense. It is an investment whose return can be easily calculated.

The Local Talent Pool Is No Longer Enough

The local pool of qualified technicians and collision repair professionals is no longer sufficient to meet demand. That’s why recruiting a qualified foreign worker is no longer a last-resort solution reserved for large companies. It has become a normal business continuity strategy for a growing number of shops.

Where to Start

If a key position at your shop has remained vacant for months:

  • Calculate the true cost of that vacant position for your business.
  • Advertise the position and try to recruit locally. Websites such as Canada Motor Jobs, Indeed, and LinkedIn can help you reach potential candidates.
  • Reach out to trade schools and explore opportunities to recruit interns or recent graduates.
  • Start the process of hiring a foreign worker early. The process—including the LMIA, work permit and CAQ—can take several months.
  • Work with a partner who thoroughly evaluates candidates. Rigorous candidate selection can make all the difference when it comes to long-term retention.

The next customer who calls your shop shouldn’t have to wait three weeks. It’s time to be proactive.

To contact Karim Mouldi: [email protected]

Picture credit : AI Generated

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