Time to Hire

Description
Time-to-hire is a key human resource management metric for the recruitment function within the department. It is the duration of time that elapses between the initial contact with a job candidate up until the time that they accept the offer of employment. It is often seen as the efficiency metric of the recruiting team.
By accurately measuring time to fill, HR leaders can evaluate the speed of their recruitment processes, and provide fellow managers with realistic time frames for their vacant positions.

Before starting calculations, recruiters need to define the time period in question. When does time to fill start?
The standard is the day when a job requisition is opened or the day approval is given to fill a position. And when does the metric end? Recruiters can measure until an offer has been made, or accepted, or until the new employee actually starts. What’s important is that HR leaders define their time period once, and continue to measure it in the same way.

The generally accepted time to fill calculation is:

Time to Fill = Total Number of Days Job is Available and Unfilled

Next, to determine your company’s average time to fill, you need to gather this data for every job posting within a set time frame–one month, per quarter, or perhaps annually.

Average Time to Fill = Total Number of Days of Open Jobs / Total Number of Jobs Open

Jobs that are filled both by internal and external candidates need to be included, and the calculation of days open needs to be consistent. Will you include weekends and holidays? Many aspects of recruiting now happen regardless of date or time, so some HR leaders will measure time to fill with time frames that meet their company’s situation.