What Does It Mean?Time to hire refers to the number of days (or applicable timeframe) it takes from the moment a potential hire is approached and offered a position to the point in time when they accept a role. This HR analytics KPI is a measure of how efficiently a company’s recruitment and hiring process is functioning.
Why Does It Matter?
The time to hire KPI is a crucial component of the hiring process since it reveals exactly how effectively your HR team is filling new positions as needed. The metric also indicates how successfully your team is handling two vital aspects of recruitment: identifying the right talent, and ensuring they are hired for the positions needed.
Time to hire can help companies understand their pipelines better, determine chokepoints, and identify areas where they can remove friction to improve the overall hiring process. Over the long run, better tracking of time to hire key performance indicators helps assure that the right candidates are hired.
See it in action:
How Do You Measure the KPI?Time to hire can be measured easily, as the metric is mostly arithmetic. To determine the KPI, simply subtract the day a candidate entered the hiring pipeline from the day the candidate accepted the offer. In this formula, day 0 is the time when the position was officially made visible to prospective candidates.
What Sources Would You Use to Measure the KPI?Measuring time to hire requires looking both at the larger recruiting process and at more internal factors. You can include data sources such as interviews per hire, the number of candidates for a position, and internal metrics like HR team size.
Give Me an Example…
Let’s say your HR team is highly effectual at identifying top talent, but somehow it seems that by the time you hire new staff, you’re down to your third or fourth option, thereby reducing the quality of your team. This could stem from a variety of factors, but a lengthy application and onboarding process might be the culprit.
If potential candidates are forced to jump through several hoops and unnecessary procedural steps to simply fill a position you know they’re qualified for, they may simply seek positions with easier hiring processes.
Understanding how to streamline the process and overcome pain points can help attract and retain top talent.
What Benchmark/Indicators Should I Use?
Some useful benchmarks include:
- Time to fill
- Number of qualified candidates
- Interviews per hire
- Quality of hire