Hi-vis vests still hanging by the lockers at the start of a shift, one worker pulling on a vest

Employee No-Shows and Late Starts: Why Overtime Is a Hiring Cost

Blog6 min readTeam Radius Hire

Short answer: The cost of an employee no-show on the first day, or of a late start, is the shift: overtime, last-minute agency cover or lower output. To price it, multiply the shift days lost by the extra cost of covering one shift, not by the starter's full wage. That cost lands in payroll and operations, not in the recruitment budget, so the hiring report can still look fine.

A late start is only one part of the picture. To build the rest with your own figures, see the cost of a frontline hire in the Netherlands.

How do you work out the cost of employee no-shows and late starts?

Count the shift days lost, then price each one at the extra cost of covering it. Four steps:

  1. Count late starts in shift days. A late start is the number of shift days between the date the client needed someone and the date they actually started.
  2. Count day-one no-shows separately. A day-one no-show is a planned starter who did not arrive on the first day. Note the reason where you know it.
  3. Find the extra cost of covering one shift. That is what overtime or last-minute agency cover costs on top of the planned shift. It is not the starter's full wage.
  4. Multiply, and count each cost once. A late start and the overtime that covers it are one cost, not two.

Radius Hire's 2026 research paper on frontline hiring handoffs shows the arithmetic. It assumes that ten starters a month begin three days later than needed: 30 shift days. At an assumed extra €60 per shift for overtime or agency cover, that comes to €1,800 a month for one role at one site. The paper's full model, which adds repeated work and avoidable drop-outs, is set out in what slow hiring costs.

Illustrative: every figure is an assumption, not a Radius Hire customer result, a benchmark or a forecast. The example assumes one shift per starter per day.

Who pays when a new starter does not arrive?

Four parties, and only one of them sits in recruitment.

Who paysHow they payWhere it is booked
The client siteOvertime, last-minute agency cover or lower outputPayroll and operations
The recruiterHours spent finding, screening and preparing a replacementNowhere, unless someone counts them
The agencyMargin lost to those hoursThe agency's own results
The compliance fileChecks done late or under pressureRisk, until something goes wrong

Summary built for this article from the paper's "who pays" section.

The recruiter's hours are the hardest to see. The paper's view is that in busy teams, repeated questions, resent documents and chased approvals may add up to as much time as screening itself. It also says it found no reliable European data on this, so measure it in your own process. Its view on margin is just as careful: staffing margins can be thin, which is a reason to count lost hours, not proof that late starts cause low margins.

The compliance file pays when checks slip. Dutch government guidance (Rijksoverheid) says a company that hires an agency worker must check the worker's original identity document itself before work starts. That check cannot simply be skipped to save a shift. For how to plan these checks before the offer, see checking frontline candidates before the offer. Where a work permit is needed, a missing document is more than a delay, so check the current rules with your legal adviser.

Why doesn't the recruitment budget see the cost?

Because the report counts placements, and a placement is not a worked shift.

The recruitment report measures candidates screened, interviewed and placed. The cost of unfilled shifts is paid for somewhere else. The site's payroll carries the overtime, and operations carries the lost output. Neither number comes back to the report. The paper puts it in one line: "Overtime is a recruiting failure that shows up in payroll."

What mistakes hide the cost of no-shows and late starts?

  • Pricing an empty shift at the full wage. That overstates the loss. Fix: use the extra cost of cover.
  • Counting the same day twice. Fix: a late start and the overtime that covers it are one cost.
  • Lumping no-shows and late starts together. They have different causes, owners and fixes. Fix: record them separately, each with a reason.
  • Leaving the number in payroll. Fix: send late starts in shift days and no-shows as a count to both the agency account manager and the site lead, in the same message, every week. They sit well alongside the wider measures of quality of hire in frontline recruitment.
  • Leaving "ready to start" without an owner. Fix: for each starter, one person makes sure the contract is signed and the ID check is planned before the weekend, not on Monday morning. A first day checklist for agency workers helps that person.

What does this look like on the shop floor?

At 05:45 on a Monday, a team leader at a cold store near Rotterdam starts the shift with four empty positions.

Two new starters did not show up. Two more were ready to work but could not start, because a contract signature and an ID check were not done by Friday. She starts asking who can stay on after their own shift. This week's recruitment report will still count four placements.

The two no-shows may have had reasons nobody could control. The paper says candidates also leave for reasons no agency controls, like a better offer or a change at home. The two late starts are different: the candidates were ready, but the last step had no owner and no deadline before the weekend.

This scene is a composite, not a documented case.

How Radius helps

Radius Hire is an AI hiring platform for frontline roles, built in Amsterdam for staffing agencies and employers who hire for the work floor, and a person makes every hiring decision. In the Radius ATS, offers are sent and signed electronically in the same pipeline that runs from applied to signed, and reports show time to hire, drop-off and cost per hire per role, site and source. For staffing agencies, each check keeps its source and its date.

On this page: FAQ

FAQ

How do you calculate the cost of an unfilled shift?

Price it at the extra cost of covering it, not at the full wage. If overtime or a last-minute agency worker costs more than the planned shift, that difference is the loss. In the paper's illustrative example, the extra cost is €60 per shift, so 30 lost shift days cost €1,800 a month.

Why do new starters not show up on their first day?

Some leave for reasons nobody controls, like a better offer or a change at home. Others are ready but cannot start because a contract or an ID check was not finished in time, which is a late start, not a no-show. Find out the reason for each one before you change the process.

What should you do when a new employee is a no-show on the first day?

Record it as a day-one no-show, separately from late starts, with the reason where you know it. Count the empty shift at the extra cost of covering it, and count the recruiter hours spent on a replacement. Send the weekly count to both the agency account manager and the site lead, in the same message. Then look at the reasons before you change the process.

Is overtime a hiring cost or an operations cost?

It is booked as an operations cost, but some of it starts in hiring. When a starter arrives late or not at all, the site covers the shift with overtime. That is why Radius Hire's research paper calls overtime "a recruiting failure that shows up in payroll". Counting it next to placements shows both sides the same Monday.

Sources

  1. Radius Hire (2026). The Radius Papers 02: The Hidden Cost of Frontline Hiring. White paper. https://radiushire.com/white-papers/radius-papers-02.
  2. Rijksoverheid (no date). Wat moet ik als werkgever doen om te voldoen aan de identificatieplicht? Government question-and-answer page. https://www.rijksoverheid.nl/documenten/vraag-en-antwoord/identificatieplicht/wat-moet-ik-als-werkgever-doen-om-te-voldoen-aan-de-identificatieplicht, accessed 19 October 2026.

Written by the Radius Hire team. Sources checked on 19 October 2026.