Time to hire is an important HR tool. It measures how long it takes to hire a new person. The time starts when a person applies for a job and ends when they say "yes" to the job offer. This number shows how well a company's hiring process works. When a company hires fast, it can get the best people first. It also saves money and keeps things running smoothly. A fast and good hiring process is a great advantage in today's job market. It shows a company is smart and respects people's time. This makes the company look good from the start.
Many people mix up time to hire and time to fill. They are not the same thing. Time to fill is the total time from when a job is approved until a person starts the job. Time to hire is just about the candidate's journey. It starts when a candidate applies. Watching this number helps a company find problems in its hiring steps, like slow reviews or offers. Companies that focus on this number often have a simpler, more candidate-friendly process. A company can use an applicant tracking system to make this process easier.
To find time to hire, you take the day a person accepts the job and subtract the day they applied. To get your company's average, you add up these numbers for all new hires. Then you divide by the number of new hires. This gives you a clear average for your team. You can get a better handle on these numbers with an HR software platform.
The average time to hire can change a lot. It depends on the industry, the type of job, and where the job is. Jobs in high-demand fields, like tech and healthcare, often take longer because they need special skills. Other jobs, like in retail or hotels, often get filled faster. It's smart to compare your company's time to hire with others in your field. The SHRM 2024 Talent Trends report has more info on these trends.
A long time to hire can cause problems. You might lose the best candidates to other companies that hire faster. One study says top people are often gone in just ten days. A slow process also makes current employees tired. They have to do extra work to cover the empty job. This can lower morale and slow down work. It can also hurt your company's name. A slow process can make people think your company is not well-run or does not care about their time. This is a key thing to think about when you make your hiring plan.
It is important for HR to know the difference between time to hire and time to fill. Both measure how fast you hire, but they start at different times. They tell you different things about your process. The AIHR blog has many articles to help HR pros learn more about these numbers.
|
Criteria |
Time to Hire |
Time to Fill |
|
What it is |
The time from a candidate's application to them accepting the job offer. |
The time from when a job is approved to when a new person starts. |
|
What it focuses on |
The candidate's journey and experience. |
The company's full hiring plan. |
|
When it starts |
When the candidate applies or is found. |
When the job is approved. |
|
When it ends |
When the candidate accepts the job offer. |
When the job is filled (the new person starts). |
|
What it shows |
It helps find slow spots in interviews and decisions. |
It shows how well the whole hiring process works. |
This difference is important. Time to hire shows how well you move a candidate through your process. Time to fill shows the bigger picture of how long it takes to fill a need in the business. For example, if time to fill is long but time to hire is short, the problem might be in finding candidates, not in the interviews themselves.
Making your hiring process faster means looking at all the steps. You can speed things up without hiring the wrong people. Here are some good ideas:
Use the same questions and scoring for all candidates. This helps managers make faster and fairer choices. An applicant tracking system can help you track this.
Modern HR software can do many busy tasks for you. It can screen resumes and set up interviews. An ATS is great for handling lots of applications and keeping the process moving. You can also use onboarding software for new hires to speed things up after they accept.
A good job ad gets better people to apply. It saves time because you don't have to look at so many wrong applications. Be clear about the job and what is needed. Always list the pay range. This helps get more good people. A clear job ad is the first step in building a pool of people for future jobs.
Don't wait for a job to be open. Look for people ahead of time. This helps you have a group of good people ready to hire when you need them.
Job seekers often complain that companies don't talk to them. Talk to candidates quickly and often. This keeps them interested and makes them more likely to accept an offer. A good candidate experience means a smooth start in the job. This is where good onboarding software helps.
Video calls make it easier to set up interviews. They cut down on travel and can speed up the process. This is a simple way to make your hiring better.
Even with good plans, companies can make mistakes that slow down hiring. Don't fall for these common traps:
A long list of people who have to sign off on a hire can slow things down. Find ways to make this process simpler. A good performance management system can help managers make good hiring decisions.
Having too many interviews can tire out both the candidate and your team. Two or three rounds are often enough. If you have too many people in the running, you may want to read our article on why employer branding should be the centre of your recruitment strategy.
When the hiring team and managers are not in sync, things slow down. Use one system and have regular talks to make sure everyone agrees. This is where an effective HRIS can help.
If managers give unclear or late feedback after interviews, it stops the process. Set clear rules for feedback and make sure it is given on time.
A bad experience, like a long application or no updates, makes good people drop out.
If a job ad is not clear, you get lots of people who are not right for the job. This makes screening take much longer.
Time to hire is not a one-size-fits-all number. It changes in different fields. For more about the money side of hiring, read the Investopedia article on the cost of a new employee.
This field needs special skills. The average time to hire is longer, about 30 to 45 days. They focus on careful technical tests and seeing if the person fits the team culture.
Because of strict rules and checks, hiring in healthcare takes a long time, often 40 to 60 days. A good HR strategy must plan for this.
These fields often hire faster, about 20 to 30 days. They need to fill many jobs quickly to keep customers happy. A fast employee onboarding process is a must to get new people started quickly.
To fix your time to hire, you need a clear plan.
First, find out your average time to hire. Break it down into steps, like from application to first interview. This will show you where the slow parts are.
With your numbers and what is normal in your field, set goals to lower your time to hire.
Find and remove any steps that are not needed. Use an ATS to do tasks for you.
Make sure all hiring managers and recruiters know the new plan. Tell them why fast feedback is important.
Keep an eye on your time to hire and other key numbers. Use this data to make smart choices and improve your process. The goal is to hire better, not just faster.
For example, a shipping company that needs to hire warehouse workers could look at their hiring data. If background checks take a long time, they could find a faster service. At the same time, they could make their job ads better. This is how a strong strategy for human resources management helps a company.
The future of hiring will be shaped by new tech and a focus on the people looking for jobs. With AI and new data tools, hiring is becoming smarter.
AI tools will handle tasks like reading resumes and setting up interviews. This lets recruiters spend more time building relationships. The Investopedia article points out that companies spend a lot on training, so making the first steps faster is a big win.
As finding good people gets harder, companies will focus on making the hiring journey great. Every step will be planned to show the company's culture.
HR people will use data more to make smart choices. By looking at numbers like time to hire and cost per hire, they can see what is working. This data helps them get money for better tools and tech. The Hiring Statistics from Gohire report has a lot of data on this topic.
More people working from home has changed how companies hire. They can now hire from anywhere, but they need to change their process to fit a global team. This also affects things like employee benefits, which are key to getting people to work for you.
By using these new trends, companies can stay ahead. They can keep getting the best people for their teams. This effort is what makes a good company great.