The vacancy rate refers to the percentage of open positions within an organization that is currently unfilled. It is a key metric used to assess workforce management and recruitment efficiency. A lower vacancy rate indicates that the organization has fewer vacant positions, which can be a sign of effective talent acquisition and retention strategies. Conversely, a higher vacancy rate may suggest difficulties in hiring or retaining employees.

Example
If a company has 100 job openings but only 90 of them are filled with employees, the vacancy rate would be calculated as follows:

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

Vacancy Rate=(10/100)×100=10%

In this example, the vacancy rate is 10%, indicating that 10% of the company's positions are currently unfilled.