Efficiency is key to securing top talent. Among the metrics used to measure recruitment efficiency, 'Time to Hire' is crucial. This article explores what 'Time to Hire' means, how it differs from 'Time to Fill', how to measure it, industry benchmarks, and strategies for improving it.
What is Time to Hire?
'Time to Hire' is the period between when a candidate applies for a job and when they accept an offer. It reflects the efficiency of your recruitment process and is a key indicator of your organisation's ability to secure top talent quickly.
'Time to Hire' vs. 'Time to Fill'
While 'Time to Hire' focuses on the candidate’s journey from application to offer acceptance, 'Time to Fill' measures the entire duration from when a job opening is posted until a candidate accepts the offer. Essentially, time to hire is a subset of time to fill, offering a more focused view of the candidate experience and recruitment process.
Learn more about 'Time to Fill' here.
How to Measure 'Time to Hire'
Measuring 'Time to Hire' is simple. Track the number of days from when a candidate applies for a job to the day they accept the job offer. The formula is:
Time to Hire = Date of Offer Acceptance - Date of Application
This metric can be tracked for individual roles or averaged across multiple positions for an overall view of recruitment efficiency. You can also break it down into stages, such as resume screening, interviews, and offer negotiation, to identify specific bottlenecks.
Industry Benchmarks for 'Time to Hire'
Benchmarks for 'Time to Hire' vary by sub-sector, job role, and location. As a general guideline, our clients report an average 'Time to Hire' of 45 days prior to working with us (our average is 35 days).
These benchmarks provide a starting point, but it’s essential to tailor your targets based on your specific sub-sector, organisational goals, and position level.
Why 'Time to Hire' is Important
Optimising time to hire is crucial for several reasons:
- Improved Candidate Experience: A streamlined hiring process keeps candidates engaged and reduces the risk of them accepting offers from competitors.
- Cost Efficiency: A shorter 'Time to Hire' reduces the costs associated with prolonged vacancies and the administrative burden of an extended recruitment process.
- Access to Top Talent: High-calibre candidates are often in demand and may not be available for long. A quicker hiring process ensures you don't miss out on the best candidates.
- Enhanced Employer Branding: A swift and efficient hiring process reflects positively on your organisation's brand, making you more attractive to potential candidates.
Strategies to Improve 'Time to Hire'
Improving 'Time to Hire' requires process optimisation, technology, and clear communication. Here are some actionable strategies:
Leverage Data and Analytics
- Use data to identify bottlenecks in your recruitment process. Track each stage to see where delays occur and address them. If interviews are causing delays, consider scheduling them more promptly or conducting multiple interviews on the same day.
Streamline Job Descriptions
- Ensure job descriptions are clear and concise, outlining essential qualifications. This attracts relevant candidates and speeds up the screening process.
Check out our guide to level up your job postings here.
Implement Pre-Screening Assessments
- Utilise pre-screening tools to filter candidates early. This includes skills assessments, personality tests, or AI-driven resume screening.
Improve Communication and Collaboration
- Ensure hiring managers and recruiters communicate constantly. Use collaborative tools like applicant tracking systems (ATS) to keep everyone informed and reduce delays in decision-making.
Offer Competitive Compensation
- Competitive salaries and benefits can reduce the negotiation phase, speeding up the hiring process. Ensure your offers align with industry standards and candidate expectations.
Check out our salary guide here.
Enhance Candidate Experience
- Simplify the application process and provide candidates with timely updates. A positive candidate experience can reduce the time spent waiting for responses and increase the likelihood of offer acceptance.
Build a Talent Pipeline
- Proactively build and maintain a talent pipeline for key roles. Having pre-qualified candidates ready reduces the time spent sourcing when a position opens.
Use Technology Wisely
- Invest in recruitment technologies like AI-driven ATS, interview scheduling tools, and chatbots to automate and accelerate hiring stages.
Conduct Post-Hire Analysis
- Regularly review time to hire for each role. Conduct post-hire surveys to understand the experience and identify areas for improvement.
Provide Training for Recruiters
- Ensure your recruitment team is trained in best practices for efficient hiring. This includes training on new technologies, interview techniques, and communication strategies.
Conclusion
'Time to Hire' is a critical metric that impacts your organisation’s ability to attract and retain top talent. By understanding its importance and optimising it, you can improve recruitment efficiency, reduce costs, and enhance your employer brand. Implementing the above strategies will help you streamline your hiring process, ensuring you secure the best candidates quickly.
