WHAT IS THIS KPI? Time to Hire is a measure of time taken by the employer to identify and hire talent to fill an open job vacancy (usually in days)
WHY IS THIS METRIC IMPORTANT? The current talent market is competitive, and employers are under pressure to secure the right resources at the right time. Any delays have the potential to result in significant commercial loss and may add stress to existing organisational structures as they deliver in the absence of necessary resources.
Typically, each employee in a business is there to perform a role that has a positive commercial impact on the organisation. As a result it is possible to calculate the opportunity cost of each vacancy per day. This can be an enlightening exercise as it allows an employer to genuinely understand the opportunity cost of each open role and the potential commercial impact of delays in filling the vacancy.
Lowering the average Time to Hire also helps create competitive advantage by enabling employers to secure better candidates ahead of rivals recruiting in the same areas.
To read more about how to measure recruitment performance in your organisation download this report.