Time To Hire!

What is Time-to-hire?

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.

Defining Time to Hire

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.

Time to hire vs Time to Fill

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.

Here are some key differences between the two:

How Does Time to Hire Affect a Business

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.

Here are a few ways that time to hire can affect a business:

• A longer time to hire can disrupt business operations and impact productivity, particularly if the open position is critical to the team or department's workflow.
• A lengthy time to hire can also result in increased recruitment costs, as the organization may need to advertise the position for a longer period of time or pay more to attract top candidates.
• If existing employees are required to take on additional responsibilities or work longer hours to compensate for the open position, it can lead to decreased morale and potentially even high turnover.
• If the open position is customer-facing, a longer time to hire can negatively impact the quality of customer service.
• A slow or inefficient hiring process can make it more difficult for an organization to retain top talent, as candidates may lose interest or accept offers from other organizations.
• A lengthy time to hire can also impact company culture, as it can create a sense of uncertainty or instability among existing employees.
• If an organization is unable to fill open positions quickly, it may struggle to keep up with the competition in terms of product or service offerings.
• A lack of new employees can also lead to decreased innovation, as new ideas and perspectives may not be introduced to the organization.
• A slow or inefficient hiring process can damage an organization's employer brand and make it more difficult to attract top talent in the future.
• A lengthy time to hire can also expose an organization to legal issues, such as discrimination claims if certain groups of candidates are not being considered or treated fairly during the hiring process.
  
  

How to Measure Time to Hire

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.

Additionally, follow the steps below to measure time to hire:

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.

Collect data
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.

How to Reduce Time to Hire Like a Pro

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.

Conclusion:

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.