Definition: Time to Hire is a recruitment metric that measures the time taken to process an applicant from the moment they apply or are sourced until the time they accept the job offer.
It gauges the efficiency of the hiring process. It’s an important metric because prolonged hiring times can lead to missed opportunities with top candidates, increased recruitment costs, and potential business disruptions due to unfilled roles.
Time to hire formula
The formula for calculating time to hire is:
Time to Hire = Date of Acceptance − Date of Application or Sourcing
For example, if a candidate applied for a position on January 1 and accepted the job offer on January 31, the Time to Hire would be 30 days.
Difference between the time to hire and time to fill
“Time to Hire” starts when a candidate applies or is sourced, while “Time to Fill” starts when a job vacancy is posted or identified and ends when an offer is accepted.
As such, “Time to Fill” might generally be longer as it includes the time before candidates begin to apply.
Difference between time to hire and time to start
Time to start measures the duration from when a candidate accepts an offer to their actual start date in the company.
While “Time to Hire” ends at offer acceptance, “Time to Start” considers the subsequent period up to the candidate’s first day on the job.
Factors that affect time to hire:
- Job Complexity: Specialist roles or positions that require a unique skill set can take longer to fill due to a smaller talent pool.
- Employer Brand: Companies with a strong employer brand or reputation in the market can experience a faster Time to Hire as they attract more applicants and can thus choose from a larger pool more quickly.
- Internal Coordination: The efficiency of communication between departments, hiring managers, and HR can influence Time to Hire. Delays in feedback or multiple layers of approvals can extend the hiring timeline.
- Market Conditions: In a job-seeker’s market, where demand for jobs exceeds supply, the Time to Hire might be shorter. Conversely, in an employer’s market, companies might take longer to make decisions as they have a larger pool of applicants to consider.
Potential downsides of a very short time to hire:
- Rushed Decision Making: While efficiency is crucial, overly rapid decisions can sometimes lead to not assessing candidates thoroughly.
- Potential for Higher Turnover: Quick hires without proper vetting can lead to a mismatch in expectations, leading to higher turnover rates.
FAQ
Why is Time to Hire an important metric?
It provides insights into the efficiency of the hiring process. A prolonged Time to Hire can result in losing top candidates, increased recruitment costs, and potential business disruptions due to vacancies.
How do you calculate Time to Hire?
Time to Hire = Date of Acceptance − Date of Application or Sourcing
Is Time to Hire the same as Time to Fill?
No, while “Time to Hire” starts when a candidate applies or is sourced, “Time to Fill” begins when a job vacancy is posted or identified and concludes when an offer is accepted.
What can impact Time to Hire?
Various factors can affect this metric, including the complexity of the role, the effectiveness of the recruitment channels, interviewer availability, candidate availability, and the overall efficiency of the hiring process.
How can organizations reduce Time to Hire?
Streamlining the hiring process, ensuring quick feedback, leveraging technology like Applicant Tracking Systems (ATS), and maintaining a talent pipeline can reduce the time.
What’s a good Time to Hire benchmark?
This varies by industry, role, and region. It’s best to compare your metric with industry standards or historical data from your organization.
How does a longer Time to Hire impact the recruitment process?
A prolonged hiring process can lead to losing top candidates to competitors, a negative candidate experience, higher recruitment costs, and potential business disruptions.
Can a quick Time to Hire compromise the quality of hire?
Yes, if speed is prioritized over thoroughness, there’s a risk of making hasty hiring decisions, which might impact the quality of hires.