Time-to-Hire

Navigating Time-to-Hire: A Comprehensive Guide

Understanding Time-to-Hire

Definition: Time-to-hire measures the duration between a job candidate’s initial contact with a company and their acceptance of the employment offer. While the concept is straightforward, the metric serves as a complex efficiency indicator for HR recruiting teams.

Efficiency Metrics and Real-Time Monitoring

Identifying Inefficiencies: A significant lag in time-to-hire indicates poor efficiency tactics within the hiring process. Real-time monitoring of time-to-hire metrics allows HR managers to detect inefficiencies promptly, enabling the implementation of measures to eliminate barriers and enhance productivity.

Expert Time-to-Hire Practices: Companies with expert time-to-hire practices break down their hiring process into efficiently managed phases. This strategic approach reduces the time required to identify and recruit promising candidates. Reviews of a company’s time-to-hire statistics can often be found on platforms like Glassdoor.

Layoffs and Hirings: Balancing Act

Simultaneous Processes: Companies may legally conduct layoffs and hirings simultaneously, often driven by factors like company restructuring, product/service changes, or resource reallocation.

Example Scenario: A clothing company shifting its core products online may lay off store staff while hiring individuals experienced in running a website. Such changes impact various company levels, necessitating hiring and firing across departments.

HR Role: While HR departments are typically responsible for layoffs, maintaining optimal time-to-hire metrics is crucial for executing changes efficiently.

Time-to-Hire vs. Time-to-Fill

Two Distinct Metrics: Although used interchangeably, time-to-hire and time-to-fill are distinct metrics providing HR departments with different insights.

Time-to-Hire Formula:

• Day 1: Job opening posted
• Day 30: Candidate accepts the offer
• Day 10: Candidate applied Time-to-hire = 30 – 10 = 20 days (average calculated based on multiple examples)

Time-to-Fill Formula:

• Day 1: Job marked for approval
• Day 20: Formal offer accepted Time-to-fill = 20 days (average calculated similarly)

Strategic Insights: Comparing time-to-hire and time-to-fill averages helps identify areas for improvement and successful processes within the hiring strategy. A shorter time-to-hire contributes to long-term company success.