What is Time-to-Hire?
Time-to-Hire measures how much time an organization takes to fill an open job position. This metric assesses the effectiveness of a company's recruitment process, from initial job posting to final employee selection and onboarding.
The Time-to-Hire metric starts when a job opening is identified and ends when the chosen candidate is hired. The time between these two events includes advertising the job, reviewing resumes, assessing the candidate, conducting interviews, and completing the background check.
A short Time-to-Hire indicates a more efficient recruitment process, allowing organizations to fill positions quickly while reducing vacant positions costs. However, it is critical to balance speed and quality to ensure the most qualified candidates.
Reduced Time-to-Hire necessitates a streamlined recruitment process, effective job postings, screening and interviewing techniques, and effective candidate communication. Recruitment teams can use data analytics to track and analyze the Time-to-Hire metric. Recruiters can identify areas for improvement and implement changes to reduce hiring time.
Types of Time-to-Hire
The following are the different types of time to hire:
- Total time-to-hire: The time it takes from posting a job opening to hiring a candidate.
- Sourcing time: The time it takes to find and attract candidates to apply for a job.
- Screening time: The time spent reviewing resumes, cover letters, and applications, as well as conducting assessments and interviews with candidates.
- Interview time: The time it takes to conduct in-person or virtual interviews with candidates.
- Offer acceptance time: The time it takes for a candidate to accept a job offer after it is extended.
Time-to-Hire vs. Time-to-Fill
Time-to-Hire and Time-to-Fill are two key recruitment metrics that track different stages of the hiring process.
- Time-to-Hire means the time it takes from when a candidate applies for a job to when they accept the offer. This metric assesses recruitment efficiency, focusing on how organizations can identify, screen, interview, and recruit candidates.
- Time-to-Fill is the time between creating a job opening and a candidate beginning working in the position. This metric considers not only the time spent on recruiting but also the time spent onboarding and training new employees. It evaluates the company's ability to find and retain talented employees by analysing its hiring practices.
Factors to Consider for Reducing Hire Time
Simplify the process to reduce steps and automate wherever possible. This makes hiring processes more efficient and reduces the time it takes.
- Use technology: Use ATS, skills assessment tools, video interviews, and social media to streamline the recruitment process, reach a larger pool of candidates, and save time.
- Define the job requirements: To ensure a focused and efficient hiring process, clearly define job requirements, qualifications, and expectations. This helps attract qualified candidates for the role.
- Communicate effectively: Provide candidates with regular updates and feedback on their application status, and ensure all questions are promptly answered.
- Assess candidates: Use assessments and skills tests to filter candidates who don't match job requirements and speed up the selection process.
Benefits of Time-to-Hire
- Cost savings: You can save money on recruitment costs, time and resources spent on recruitment activities, and losses from unfilled positions by streamlining the hiring process.
- Increased productivity: New hires can begin working sooner with less hiring time. This increases productivity and reduces the burden on existing employees.
- Improved candidate experience: Candidates value fast and efficient hiring processes. When a company has a good hiring process, employees will have a positive impression, be more interested in the job offer, and might tell others how good the company is.
- Competitive advantage: Faster recruitment helps organizations attract top talent and stay ahead of the competition.
- Improved retention: Hiring the right candidate quickly improves retention rates and reduces turnover. This is because when an employee is happy in their role, they tend to stay longer.
Want to know how Fujitsu reduces their time-to-hire by 50% using the iMocha platform?
Terms Related to Time-to-Hire
- Job Posting
- Applicant Tracking System (ATS)
- Resume Screening
- Skills Assessments
- Phone Screening
- Background Check
- Offer Letter