Remote Work Glossary

What is time to hire

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    Time to hire is a recruitment metric that measures the amount of time it takes for an employer to fill a job opening from the moment the position becomes available to the day the new employee starts working. 

    The time period calculation includes all the stages of the hiring process, such as sourcing candidates, reviewing resumes, conducting interviews, sending the job offer letter, negotiating the employment terms, and onboarding.

    What is time to hire?

    Time to hire calculates the number of days that elapse between identifying the need to fill an open position and securing a new hire for that role. It measures the hiring process's efficiency and the recruiting team's ability to identify and hire top candidates quickly.

    Understanding time-to-hire benchmarks

    Time-to-hire benchmarks are the average time to fill a position, usually calculated via the industry average. These benchmarks are used to set realistic expectations for the recruitment process and identify areas for improvement. 

    Examples of time-to-hire benchmarks

    These benchmarks vary based on industry, job role, organization size, location, and other factors. 

    For example, the time-to-hire benchmark for recruiting a software developer in the tech industry is approximately 30 days. In contrast, the average time-to-hire for hospitality is approximately 20 days, and the benchmark for health services is approximately 49 days. 

    Why do recruiters track the time-to-hire metric?

    By measuring the time to hire, recruiters and hiring managers can identify bottlenecks in the recruitment process, optimize their workflow, and reduce the time and costs associated with hiring. Consider the following benefits for tracking time-to-hire. 

    • Efficiency and cost savings by identifying inefficient processes and unnecessary expenses
    • Improve candidate experience and boost competitiveness in the job market
    • Maintain compliance with strict regulations within certain industries, especially when hiring an international team
    • Streamline workforce planning and resource allocation
    • Forecast future hiring needs and develop better recruitment strategies

    What factors affect the time to hire?

    While it’s possible to calculate an average time to hire in the company, there are a few factors to consider for individual cases that determine how long the hiring process takes. 

    • The complexity of job roles
    • The volume of applications received 
    • Availability of qualified candidates
    • The efficiency of the recruitment, screening, and interviewing processes 
    • The company’s reputation and employer brand, with a strong reputation attracting more candidates
    • Responsiveness of the recruiting team and availability of key decision-makers
    • Use of recruitment software that streamlines the time to hire

    Tips to optimize your time per hire

    Optimizing your time per hire can help you streamline your recruitment process, improve candidate experience, and attract top talent more efficiently. Here are a few tips to help you find the best talent with the least effort.

    Automate parts of the recruiting process

    Automating parts of the recruiting process can significantly optimize your time per hire by reducing manual tasks, streamlining workflows, and improving the accuracy and efficiency of the recruitment process. For example, automating resume screening can help process many applications quickly and eliminate unqualified candidates, saving time and effort. An applicant tracking system (ATS) is also a useful tool for optimizing recruitment.

    By leveraging automation technology, the hiring team can optimize their time per hire, reduce time to fill, and focus on strategic tasks that drive business value.

    Focus on passive candidates

    Passive candidates are typically experienced, highly skilled, and often have a proven track record of success in their current roles. While they may not be active job seekers, they may be open to new opportunities if the right role and employer are presented. Consider asking employees for referrals or keeping a close eye on social media platforms like LinkedIn.

    By focusing on passive candidates, recruiters can significantly reduce time-to-hire and increase the quality of hires by tapping into a highly qualified pool of the best candidates who may not have been accessible otherwise. In addition, developing and maintaining relationships with passive candidates helps recruiters build a talent pipeline, reducing the time and effort required to fill future vacancies.

    Use pre-employment assessments

    Pre-employment assessments provide valuable insights into a candidate’s skills, abilities, and cultural fit early in the recruitment process. From cognitive ability tests, behavioral assessments, and job simulations, these pre-employment assessments help recruiters make informed hiring decisions. 

    Recruiters can eliminate unqualified candidates early in the process, reducing the time and effort needed to review applications and conduct interviews. These assessments also help identify high-potential candidates who may have been overlooked in a traditional recruitment process. 

    Maintain a talent hub

    Creating a database of pre-screened and enthusiastic candidates offers easy access to potential employees when a new role becomes available. 

    Maintaining a talent pool helps recruiters stay in touch with top candidates who may not have been a good fit for a specific role but may be an excellent fit for new job openings. Ultimately, these databases save time and money when finding local and global talent.

    Deel offers a way to streamline HR admin, including onboarding, payroll, and compliance. Hire, pay, and manage your global team with Deel, and free up your time to focus on business growth and strategic tasks, while tracking your HR metrics through our customizable reporting feature.

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