We always talk about quality of hire. The metrics is so important that we compare it to the most of recruitment. In the similar way, the time-to-hire can be considered as the father of the recruitment.
There are numerous of metrics when it comes to recruitments but nothing can be compared to the time-to-hire. Research says that more than 50% companies use this metric in to benchmark their candidate sourcing efforts.
The measurements that help us to measure the success of hiring track and optimize the process of hiring candidates of a company is known as recruitment metrics.
The process helps to evaluate whether the company is hiring the right candidates or not.
Time-to-hire is one of the most important recruitment measures indeed.
Here’s Andy talking about the importance of Time to Hire:
Define Time to Hire
There is a certain time frame between the moment when the candidate applies for the job and to the moment when he accepts the offer. This time frame is called time-to-hire.
A few people treat it same as the time to fill, however there is a difference. Time to fill refers to the time between the job opening and offer acceptance whereas time-to-fill is measured from the moment when the candidate enters the pipeline.
Time-to-hire is considered important because it refers to the speed of the hiring. It tells you how quickly the HR of the company can identify the right candidate for the structure. It is an indication of capability of your hiring team as well.
Why time-to-hire should be measured?
Measuring the time-to-hire is an effort to achieve the perfection. No process is ever perfect and really finished. Measuring this time frame is important because it helps to identify your room for improvement.
You can identify your shortcomings and weak spots in the process of hiring and implement improvements to make it better.
We have answered few common questions because our answers will help you to hold the process of recruiting more efficiently.
How long do you take to select the right candidate?
This is the most common aspect of hiring but, we often underestimate it. You need a fast recruiting team because a slow one will make you lose fast-moving (quality) candidates.
You will be surprised to know that a whopping 57% of employees lose interest in job if the process takes too much time. That is why; one has to calculate the certain time frame. You should know how long it takes to hire someone for a particular role.
Once you have found the right person, how long does it take you to move him in the process?
Recruitment includes different stages: CV screening, phone interview, assessment, in-person interview etc. Breaking down your time-to-hire according to these different stages will help you to calculate how long a candidate takes to move from one stage to another.
Will your time-to-hire change if you are hiring another candidate for the same role?
Tracking the time for a particular role of hiring will help you have an estimate how long will it take to recruit another candidate for the same role. Next time, your organization will have an idea about the particular time you will need to fill the seat.
Do you know how many resources you need to hire for a certain role?
This question is like an extension to the previous one. If you know how long the recruitment process will take when two persons are working on it, you will certainly know the effect of introducing one extra recruiter to the process.
How to measure time-to-hire?
We have illustrated a simple formula to calculate this time.
Time to hire = Day candidate accepted offer – Day candidate applied for the
position (entered the pipeline).
An example will help you to understand the formula in a better way.
Imagine your hiring team noticed a new job opening on Monday. You will count it as the day 1. Recruiters start their work, throw their magic and a candidate applies for the job on the day 13. After all the negotiation, he accepted the job offer on the day 28.
Time-to-frame here is, T = 28-13 = 15.
The formula will help you to calculate the time-to-frame for each frame and thus you can calculate average time as well.
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