In today’s dynamic job market, recruiting top talent swiftly and effectively is a critical goal for organizations aiming to stay competitive. One of the key metrics defining recruitment success is “Time to Hire.”

Understanding and optimizing this metric is pivotal for recruiters and hiring teams striving to streamline their processes, attract top-tier candidates, and secure talent efficiently.

In this guide, we will take a closer look at what time to hire is, the time to hire formula, why it is important, and how to improve it. 

What is the Time to Hire?

Time to hire is a recruitment metric that measures the length of time between a job position being opened and a candidate accepting the job offer. It starts when the job requisition is approved and ends when the candidate agrees to join the company. It is a key indicator of a company’s efficiency in the hiring process.

How to Calculate Time-to-Hire?

Calculating time-to-hire involves measuring the duration between the moment a job opening is initiated and when a candidate accepts the job offer. Here is a step-by-step breakdown:

• Start Date: Identify the start date. This could be when the job requisition is approved or when the job is officially opened for applicants.
• End Date: Determine the end date, which is when the candidate formally accepts the job offer.
• Calculate Duration: Subtract the start date from the end date to find the total duration in days, weeks, or months.

Example:

Start Date: October 1st, 2023 (Job opening officially announced)

End Date: November 15th, 2023 (Candidate accepts the job offer)

Time to Hire = November 15th, 2023 – October 1st, 2023

Time to Hire = 45 days

This means that, in this example, the time it took to hire the candidate from the opening of the job position to the acceptance of the job offer was 45 days.

By consistently tracking time-to-hire metrics, companies can assess the efficiency of their recruitment process. Analyzing this metric over time helps identify trends, areas for improvement, and opportunities to streamline the hiring process. It ultimately enhances the organization’s ability to attract and retain top talent more efficiently.

What is the Average Time to Hire?

The average time to hire is the mean duration it takes for a company to fill a job position, typically measured in days or weeks. It is calculated by summing the time taken to fill each open position and then dividing that total by the number of positions filled within a specific timeframe.

This metric provides a general overview of how long the recruitment process typically takes within an organization. However, it is essential to note that the average time to hire can vary widely based on several factors, including the role’s complexity, the industry, the availability of qualified candidates, internal procedures, and the efficiency of the hiring process.

For instance, let us consider a scenario where a company fills four positions with respective time-to-hire values of 30 days, 45 days, 60 days, and 20 days. To find the average time to hire:

• Total time to hire = 30 days + 45 days + 60 days + 20 days = 155 days Number of positions filled = 4
• Average time to hire = Total time to hire / Number of positions filled Average time to hire = 155 days / 4 = 38.75 days

So, in this hypothetical scenario, the average time to hire for these positions is approximately 38.75 days.

The use of statistics in determining the average time to hire helps organizations grasp the central tendency of their recruitment process, providing a numerical summary of the time it takes to bring candidates on board. This statistical metric is vital for assessing the efficiency of the hiring process, identifying patterns or trends over time, and setting benchmarks for improvement.

Why is Having a Low Time-to-Hire Important?

Maintaining a low time-to-hire is crucial for several reasons:

• Attract Top Talent: In a competitive job market, candidates often have multiple offers. A swift hiring process makes a company more attractive to top talent, reducing the risk of losing candidates to competing offers.
• Positive Candidate Experience: A shorter hiring process signifies efficiency and respect for candidates’ time. It leads to a positive perception of the company, improving the candidate experience even for those not ultimately hired.
• Reduce Cost per Hire: Prolonged vacancies can incur costs through lost productivity, additional recruitment efforts, or the need for temporary staff. A quicker hiring process minimizes these expenses.
• Improve Employee Engagement: Faster hiring means roles are filled promptly, reducing the burden on existing staff and maintaining productivity levels. This contributes to better overall employee engagement and satisfaction.
• Adaptability to Market Changes: A nimble hiring process allows companies to swiftly respond to market changes or sudden business needs, ensuring they can acquire necessary talent promptly .
• Enhance Employer Brand: Companies known for efficient and fair hiring processes tend to have a better employer brand, attracting more high-quality applicants.

How to Improve Time to Hire

Improving the time to hire involves streamlining and optimizing the recruitment process to expedite the time it takes to fill open positions without compromising quality.

Let us have a look at strategies to improve this metric:

Refine Job Descriptions

• Ensure job descriptions are clear, specific, and accurately depict the role’s responsibilities and expectations. This attracts candidates who genuinely fit the role, reducing time spent on unsuitable applicants.

Utilize Technology

• Applicant Tracking Systems (ATS): Implement an ATS Software to automate resume screening, manage applications, and track candidate progress, thereby expediting initial candidate evaluations.
• AI and Automation: Leverage AI-driven tools for tasks like resume parsing, candidate matching, and initial screenings, saving time on repetitive tasks.

Streamline Processes

• Reduce Redundancies: Evaluate and eliminate unnecessary steps in the recruitment process to create a more efficient workflow.
• Optimize Interview Stages: Limit the number of interviews to essential rounds, and schedule them promptly to avoid prolonged decision-making.

Internal Communication and Collaboration

• Align Stakeholders: Ensure clear communication and alignment between hiring managers, HR, and other decision-makers to expedite the decision process.
• Feedback Loops: Establish efficient feedback loops between hiring teams and candidates to minimize delays in decision-making.

Employ Talent Pools and Networks

• Maintain Relationships: Cultivate relationships with potential candidates even when no immediate openings exist. Engage with previous applicants, referrals, or passive candidates who might be a good fit in the future.

Training and Development

• Internal Training: Equip hiring managers with the necessary training to conduct effective and efficient interviews, leading to quicker decision-making.
• Interviewer Calibration: Ensure consistency in evaluation criteria among interviewers to prevent unnecessary delays due to conflicting opinions.

Measure and Optimize

• Track and Analyze Metrics: Continuously monitor time to hire and other relevant metrics to identify bottlenecks or areas for improvement.
• Feedback and Iteration: Gather feedback from candidates, hiring teams, and stakeholders to refine processes and implement improvements iteratively.

Promote a Positive Candidate Experience

• Responsive Communication: Keep candidates informed throughout the process to maintain engagement and interest in the position and the company.

Time to Hire vs. Time to Fill

Conclusion

Recruitment metrics can help organizations get a firm understanding of where they can be better at recruiting top talent. A shorter time to hire generally signifies a more agile and responsive recruitment strategy, potentially reducing costs associated with prolonged vacancies and ensuring a positive candidate journey.

Aiming to reduce the average time to hire can be a strategic goal for companies seeking to streamline their recruitment processes, attract top talent more efficiently, and minimize the costs associated with prolonged vacancies. Tracking this metric over time helps companies understand trends, identify bottlenecks in the hiring process, and make adjustments to improve overall efficiency.