What about “placeholders”? Isn’t it better to fill the position rather than have a vacancy (or maybe losing the position for this budget year)?

I have done it both ways. In most cases it is not worth it. I had vacant positions lost to budget cuts. So, the next time I had a position, I made sure that it got filled before they could cut it. I am here to tell you that in the long run, you are better off losing the position. I have discussed this many times with many managers, and most experienced managers agree with me.

If the position is really important, you can either make the case for extra-budget hiring or you can put it in next year’s budget. If you’re just trying to expand your empire, then try a route with fewer drawbacks.

Drawbacks?

Unless the position is an extremely low-level one, you have spent a lot of money on training, “handling”, and benefits.

And there will be repercussions if you terminate the employee. And if you don’t. Either way, you will have given the rest of your staff (and maybe others–including your boss) reason to question your abilities in hiring and managing. Not to mention the morale-killer it can be to the staff.

Morale killer?

A morale killer, first, in that the individual doesn’t carry his/her share of the load (and the team will resent it.)

Second, if you do terminate the “placeholder” employee, you have reinforced the notion that they, also, are easily expendable (which means they will be polishing their resumes and ready to jump) and you may find more vacancies then you expected/wanted.

Third, if it wasn’t an easy termination, you have spent a LOT of management time going through the coaching/counseling/termination process. And if they file a “wrongful termination” suit, even if you win what were the real costs? If they weren’t fired for “cause” then they may file for unemployment insurance with the state and you get to help pay for it.

All in all, if you are thinking of hiring an employee just to keep the position open, give it a rethink. Try to find a better way to solve your problem.