What (Definition)
The average time to hire is the number of days taken by the particular company to fill out the relevant job opening. This is a crucial metric in HR, the more you take time to fill the post, the more you lose the qualified individual to compete. Candidates would prefer to wait two weeks of waiting for a company call rather than two months. Do you know the US indicates its average time to hire for a job as 36 days? Some countries may take higher counts.
Why (Benefits)
Understanding the importance of the Average Time to Hire metric is important in the recruitment process. It plays a significant role in creating a positive first impression on candidates and ensuring efficiency and effectiveness within the organization. Let’s look into why analyzing the average time to hire is beneficial for companies.
- Improves Candidate’s First Impression – The initial communication and timing reflect the organization’s efficiency, positively impacting the candidate’s perception.
- Reduces Candidate Dropout Rates – According to a 2021 Talent Board Survey, lengthy recruitment processes are a major reason candidates withdraw their applications.
- Leads to Cost Savings – Timely hiring helps in saving costs related to extended job advertisements and vacant position periods.
- Boosts Productivity – Filling positions promptly prevents disruptions in service and organizational productivity.
- Attracts Suitable Candidates – A shorter, well-managed hiring process attracts the right candidates for the job role, ensuring a good fit and reducing future turnover.
- Enhances Company Reputation – Quick and efficient hiring processes reflect positively on the company’s image, attracting more high-quality candidates in future recruitments.
By analyzing and giving priority to reducing the Average Time to Hire, companies not only ensure a smooth hiring process but also save on resources, enhance their reputation, and ensure the onboarding of suitable candidates, contributing to overall organizational success.
How (Calculation)
Formula
Time to Hire = The Day the Candidate was Hired – The Application Date for the Job
Average Time to Hire = (Employee 1 Time to Hire + Employee 2 Time to Hire) / Total Number of Hired Employees
The average time to hire a job candidate can be different from person to person. Let’s get a clearer idea through the below example.
Suppose the application was on the 1st of December 2022 and let’s calculate the average time to hire for the hires in 2023 based on the given data above. The total number of employees hired in 2023, so far is 02. They are employee numbers 9 and 10.
TH of Employee 9 = 01/01/2023-01/12/2022= 30 days
TH of Employee 10 = 15/03/2013- 01/12/2022= 102 days
Avg. Time to Hire = (30 days + 102 days) / 2
= 67 day