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Average Days in Market

HR Metric – Average Days In Market

What (Definition)

Tracking the average days of a vacancy will help to determine the company’s ability to fill the positions with the right talent. The average number of days in the market is about getting to know how many days it took for the open status job to be filled with a quality candidate. Entry-level vacancy gets filled quickly. On the other hand, senior-level or executive job roles may take time due to the selective hiring process. 

Why (Benefits)

The recruitment process and the quality of the job description impact how long the vacancy remains in the market. A well-designed and marketed job posting will reach more clients and have the potential to fill the vacancy quickly.

The pandemic has caused ups and downs in the job market. One of the effects is that it takes longer to fill the job vacancy. Considering how many vacancies were advertised for the month and how many of them are still in open status will help us understand the average number of days the vacancy has been on the job market.

How (Calculation?)

Consider the date the vacancy was opened for the market and the date the job posting was closed. To find the average duration, add the total number of days of all the active job vacancies and divide it by the total number of job vacancies posted by the company.

Job Table with Open Positions and Days in Market

Total days the jobs were open = 79+71+61+15 = 226

Remember, this is calculated only for th positions that are open.

Say, the Total number of Open positions = 4

Average days the jobs were open = 226/4 = 56.5 days

We can conclude that this company takes an average of about 57 days to fill its vacant position from the day it published the vacancy job posting. The average day can change from time to time, depending on many other factors. Some factors can be influenced by the company, and some are beyond the company’s control. The business should take measures to keep the number of days minimal to maintain efficiency in the hiring process.

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