Maximizing recruitment efficiency in Europe: Measuring time-to-hire and time-to-fill

3 mins, 16 secs read time

As a recruiter, you most likely know that there’s a constant race against time to find the perfect candidate. Business needs are growing, the clock never stops ticking and the quality of your hire is hanging in the balance. Every talent leader knows this relentless pressure all too well. But what if your life could be made easier by utilizing key metrics like time-to-fill and time-to-hire? Let’s explore these transformative metrics and examine how you can make efficiency the cornerstone of your recruitment strategy.

How do you measure time-to-fill?

Definition: Time-to-fill is the amount of time it takes to find and hire a new candidate. It’s often measured from the day the job post is published, to the day a candidate accepts the job offer.

Why it’s important: This metric offers a comprehensive overview of the efficiency of your recruitment strategy. In the current competitive talent market, speedy and transparent communication with candidates isn’t just preferred – it’s essential. Efficient processes not only enhance the candidate experience, but also ensure your organization can quickly adapt to business needs.

What is the formula for time-to-fill in recruitment?

Definition: The formula for calculating time-to-fill subtracts the day a job requisition is approved from the day the job offer is accepted.

Example: Let’s say a company approves a job requisition (which means they officially start looking for candidates) on March 1. Then, a candidate accepts a job offer for this position on March 30.

*According to the formula:

Time-to-fill = day job offer is accepted – day job requisition is approved

So in this example:

Time-to-fill = March 30 – March 1 = 29 days

Therefore, the time-to-fill for this particular job would be 29 days.

Why it’s important: Knowing and applying this formula helps pinpoint recruitment bottlenecks and trends, guiding improvements. By refining strategies, your team can hire faster and more effectively, aiding your company’s growth and scaling efforts. A testament to the impact of strategic recruitment can be seen in our case study of Gong, a company that achieved hypergrowth without compromise.

I love Greenhouse reporting. It’s one of the main reasons people choose Greenhouse over competitors.
– Kelsey Biggs, Head of Global Talent Acquisition at Gong

What is the time-to-hire KPI?

Definition: Time-to-hire begins from the moment a candidate enters your pipeline to the moment they accept the job offer.

Example: Imagine a candidate applies for a position or is sourced and enters your recruitment pipeline on April 5. This candidate goes through the interview process and finally accepts the job offer on April 25.

*According to the formula:

Time-to-hire = day job offer is accepted – day candidate enters pipeline

So in this example:

Time-to-hire = April 25 – April 5 = 20 days

Therefore, the time-to-hire for this candidate would be 20 days.

Why it’s important: This KPI is indispensable for assessing the efficiency and effectiveness of your recruitment funnel. In an era where every second counts, reducing time-to-hire is synonymous with gaining a competitive edge in your structured hiring process.

What is a good benchmark for time-to-hire?

Definition: A good benchmark for time-to-hire varies depending on the industry, role and location but typically, an efficient range is considered to be between 25 to 40 days.

Why it’s important: Establishing a benchmark is essential for evaluating the performance of your recruitment process against industry standards. It enables talent leaders to measure success, identify areas for improvement and adjust strategies to stay competitive in attracting top talent. For further insights into how leading organizations are leveraging data to set these benchmarks, explore our discussions on data-driven recruiting in 2024.

Are you looking to elevate your recruitment strategy? Discover how the latest AI technology can revolutionize your hiring process by exploring insights from our past event, AI in Greenhouse: Your key to hiring efficiency in 2024.

Watch here