There are several Key Performance Indicators (KPI) used to analyze organizational recruitment processes. Metrics such as Time to Present, Interview to Offer, Offer Acceptance and Time-to-Fill are areas that are often tracked to evaluate the success of your recruitment strategy. Combined, these tools are all aimed at providing a clear understanding of your talent acquisition team’s success and challenges in various areas. Of the many methods and tools used to measure recruiting strategies, Time-to-Fill is one that is regularly considered. Recruiters are often challenged by hiring managers to fill open positions as soon as possible, and in many cases they needed the position filled “yesterday.” To stay abreast of their efforts human resources and talent acquisition leaders seek ways to track and improve their average Time-to-Fill.
The hiring process - when done well - takes time. Some of the most well-known, top companies average 4-8 weeks to fill their positions. In an article recently posted on Socialtalent.co, author Michelle Burke shared her findings on the average Time-to-Fill for some of these major organizations:
· Google – 8 weeks
· Salesforce – 3-8 weeks
· Facebook – 8 weeks
· Apple – 4 weeks
· Amazon – 2-10 weeks
In a separate article, on SHRM.org, by Roy Maurer former Chief of Talent Acquisition for the CIA, Ronald Patrick stated that the average Time-to-Fill ranged from 6-9 months from resume submission to onboarding – some positions took longer to fill.
Is Implementing This Metric Right for Your Organization?
When evaluating your current opening take into account the amount it costs your company each day that there is no one sitting in that open chair. For positions that generate revenue daily, the vacancy can have immediate impact on your bottom line.
Other Factors to Consider
Before you implement or begin tracking this metric, keep in mind that there are other factors to consider first.
· What is the target number that you want to see? Is your goal to fill all positions in 30 days or less? If so, keep in mind that fast hires aren’t always proven to be great ones. Hiring practices should focus on quality, otherwise you might end up losing more in the long run.
· Thoroughly consider each open position individually and set your Time-to-Fill goal accordingly. A 45-day Time-to-Fill deadline might be sufficient for an entry-level position, however it can limit you when it comes to higher level openings.
Careerbuilder.com agrees that tracking your hiring metrics is a factor in a successful recruiting strategy. They suggest several metrics. Among them are:
Cost-per-Hire: Cost-per-hire represents the costs involved with a new hire. These costs include the sum of advertising, agency fees, employee referrals, travel cost of applicants and staff, relocation costs, and recruiter pay and benefits divided by the number of hires. This metric can show which types of positions cost more to fill, and it can help to decide where costs can be cut in the recruitment process.
Annual Turnover Rate: Annual turnover rate is the rate at which employees enter and exit your client as an employee. To calculate annual turnover, first calculate turnover for each month by dividing the number of separations during the month by the average number of employees during the month and multiplying by 100.
In conclusion, when it comes to monitoring your progress, adding metrics is an essential way to stay on track and quickly catch red flags and inefficiencies in your process that could have otherwise gone unnoticed. The key is fully understanding your positions, the market, and what it takes to find the right candidate rather than simply hitting the target metric.
Sources: iCIMS.com, careerbuilder.com, shrm.org, socialtalent.co