What is time to hire?

Time to hire is a key metric that tracks the amount of time it takes for a company to fill a job opening, starting from when the job is posted to when a candidate accepts the offer. It reflects how efficient the recruitment process is and helps identify areas for improvement.

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A shorter time to hire shows a more efficient recruitment process, where the company quickly attracts and hires top talent. This reduces the costs of vacant positions and boosts productivity by having the right person in the role sooner. A shorter hiring time can also enhance the company’s employer brand, improving the candidate experience and making the company more attractive to job seekers.

However, a longer time to hire may signal inefficiencies, such as unclear job descriptions, poor sourcing strategies, or a lengthy interview process. This can lead to extended vacancies, higher costs, and negative candidate experiences, which may discourage potential hires from accepting a job.

Importance of time to hire

Time to hire plays a crucial role in the recruitment process for several reasons:

  1. Efficiency: A shorter time to hire signals an efficient recruitment process. It means the company can fill a job opening quickly, reducing the costs linked to vacancies and boosting productivity.
  2. Competitive advantage: Speedy hiring provides a competitive edge. Job seekers often prefer an efficient hiring process. Companies that can move quickly are more attractive to potential candidates, increasing the chances of accepting a job offer.
  3. Cost savings: Delays in filling an open role lead to higher recruiting costs and lost productivity. A faster time to hire saves money by cutting down on recruiting expenses, onboarding, and other related costs.
  4. Employer brand: A long time to hire can harm your employer brand. Slow processes lead to poor candidate experiences, which can deter job seekers from applying or accepting the job in the future.
  5. Identifying areas for improvement: Tracking time to hire helps pinpoint weaknesses in the recruitment processes. If it’s consistently long, it may indicate issues with sourcing, clear job descriptions, or the interview process. Analyzing this metric helps recruitment teams improve the effective recruitment process.

Reducing time to hire benefits your team by creating a smoother onboarding process and allowing new team members to start contributing faster. Using tools like recruitment software or an applicant tracking system can help streamline the amount of time it takes to schedule interviews, extend job offers, and meet the start date of new hires.

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Time to fill vs. Time to hire

While both metrics are related, time to fill and time to hire are different.

  • Time to hire refers to the duration between when a candidate first applies or is sourced for a job opening and when they accept the offer. This metric focuses on how quickly a company moves from application to offer.
  • Time to fill, on the other hand, measures the total time from when a job role is posted to when the role is successfully filled. It accounts for the full recruitment cycle and offers insights into how quickly the company can close an open role.

Understanding both metrics helps recruitment teams identify bottlenecks and improve the overall recruitment process.

How to calculate time to hire?

To calculate time to hire, follow these steps:

  1. Determine the starting point: This is when the candidate first enters your pipeline, either through an application, employee referrals, or being sourced.
  2. Track the end point: This is when the candidate accepts the job offer. The metric focuses on the total days or weeks between these two events.
  3. Formula: Use the following formula:
  4. Time to hire = (Date of job offer accepted – Date candidate enters pipeline)
  5. Average time to hire: If calculating across several roles or positions, find the average by summing up the time to hire for each position and dividing it by the number of hires.

Suppose your top candidate accepts the job offer on Day 28, and they applied for the role 10 days after you posted it. To determine the time-to-hire for this role, subtract the day they applied from the day they accepted the offer:

28 – 10 = 18 days

Now, let’s calculate the average time-to-hire across multiple hires. Add the time-to-hire for each candidate and divide by the total number of hires. For example:

  • Emily: 18 days
  • David: 14 days
  • Sofia: 20 days
  • Liam: 11 days
  • Noah: 19 days

Here’s the calculation:

  1. Add up the days: 18 + 14 + 20 + 11 + 19 = 82 total days
  2. Divide by the number of hires: 82 days / 5 hires = 16.4 days

In this case, your average time-to-hire is 16.4 days, providing insight into how efficiently your recruitment process is running.

This approach helps organizations optimize their recruitment software or applicant tracking systems to improve recruitment processes and ensure more efficient hiring.