Published on December 6th, 2022
Time to hire is an important metric for organizations because it can help them gauge the efficiency of their recruitment and hiring processes, and it can also impact the quality of the candidates they are able to attract and retain. Reducing time to hire can help organizations fill open positions more quickly, which can be particularly important in fast-changing industries or when there is high demand for certain types of skills or expertise.
Time to hire is the length of time it takes for an organization to identify, recruit, and bring a new employee on board. It can be measured from the moment the job is posted to the moment the new hire begins work, or it can be measured from the moment a candidate is identified as a top choice for the position to the moment they begin work.
Before we continue to learn more about this very important metric, we need to compare it against another very similar sounding metric and establish their differences. Time to hire and Time to fill are related. While one talks about the precise time it takes for an organization to recruit a candidate, th other talks about how long it takes to fill in a position.
Tracking time to hire helps you create better candidate experience. A long and tedious hiring process can also create a negative impact on your company’s reputation.
According to a report, about 30% of applicants lose their interest if they don’t hear back within one week of initial interview. Around 46% will drop out if they don’t receive a post interview update within one to two weeks of the interview.
The time it takes to hire a new employee can have a significant impact on a business.
It is pretty simple and easy to measure this metric. The formula is given below.
Time to Hire= The day the candidate accepted the offer - The day the candidate entered the hiring pipeline
For example, consider the day you posted the job on a portal as day 1. Then, your ideal candidate applied for the job on day 6, and the candidate accepted the offer on day 15. So your time to hire is 15-6= 9 days.
According to the Society for Human Resource Management (SHRM) the average time to fill is around 36 days. Here is some data which gives you an idea of the global hire metric benchmark.
Identify the start and end points of the time to hire process
The start point is typically the moment a job is posted, while the end point is the moment the new hire begins work.
Organizations can track the time it takes to complete each step in the recruitment and hiring process, including posting the job, reviewing resumes, conducting interviews, and making an offer. This data can be collected manually or through the use of applicant tracking systems (ATS) or other technology.
Calculate the average time to hire
To calculate the average time to hire, organizations can add up the total time it took to complete each step in the recruitment and hiring process and divide it by the number of hires. This will give the organization an average time to hire for a specific period of time, such as a month or a quarter.
Analyze and optimize the process
Once organizations have an understanding of their average time to hire, they can analyze the data and identify areas where they can optimize the process in order to reduce the time to hire. This could include streamlining the recruitment process, using technology to automate certain tasks, or offering competitive compensation and benefits packages to attract top candidates.
Even something as simple as communicating with your candidates and discussing the next steps is helpful. Here are 10 additional strategies that organizations can use to reduce their time to hire:
Clearly define the role and responsibilities: Having a clear understanding of the job requirements and responsibilities can help organizations identify the right candidates more quickly and streamline the recruitment process.
Use targeted job postings: By targeting job postings to specific audiences or using targeted recruitment advertising, organizations can attract more qualified candidates and reduce the time it takes to review resumes and applications.
Pre-screen candidates: Conducting preliminary interviews or assessments can help organizations identify top candidates more quickly and narrow down the pool of applicants.
Use assessment tools: Using assessment tools, such as skills tests or personality tests, can help organizations identify candidates who are the best fit for the role and the organization.
Consider temporary or contract staff: Hiring temporary or contract staff can be a quick way to fill open positions and reduce time to hire.
Offer a fast and efficient interview process: Streamlining the interview process by scheduling interviews in a timely manner and keeping candidates informed can improve the candidate experience and reduce time to hire.
Make timely hiring decisions: Delays in making hiring decisions can cause candidates to lose interest or accept offers from other organizations. By making timely hiring decisions, organizations can reduce time to hire.
Develop a strong employer brand: A strong employer brand can help organizations attract top talent and reduce time to hire.
Foster relationships with top candidates: Building relationships with top candidates can help organizations secure their services more quickly if an open position becomes available.
Collaborate with recruitment agencies: Partnering with recruitment agencies can help organizations access a wider pool of candidates and reduce time to hire.
After reading our guide on time to hire, you should be able to understand what exactly this metric is, why it is important, and how it affects your business. You’ve also learnt how to measure, and how to reduce time to hire without sacrificing the quality of work. So, use our guide to optimize, improve and reiterate your hiring process.
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