In order to excel in today's competitive environment, companies need to be adept at acquiring talent. An efficient recruiting process helps companies find the best employees, hire them in a timeframe and at a salary that will beat competitors, avoid operational downtime, and increase overall competitiveness. Sounds great, right? But how do companies measure whether or not their recruitment process is actually efficient?
Most companies monitor how smoothly the process is going, but not all are monitoring the “time to hire” metrics. We think they should.
The Time to Hire metric simply calculates the total number of days a position is left open, and the average time to hire is an average of all unfilled positions over a given time period. Alternatively, companies can adjust the metric by counting the days from contact with a qualified candidate until the day they sign the offer and begin working. Basically, it offers a big picture of how efficient a company’s talent acquisition strategy really is.
Monitoring time to hire is important for many reasons. It can alert a business to the fact that its recruiting tactics are lacking and can zero-in on the areas in which additional help and resources are needed. For example, a long gap in time between the position opening and the first candidate contact could mean that more work needs to be done maintaining a network of potential future employees. It could also indicate that job postings are being poorly executed. If there is a long gap between the time a candidate is first contacted and the time they sign the contract, that means the interview/outreach process might be overly complicated. Companies can break down the time to hire into subsets to figure out the areas that need improvement with the ultimate goal of reducing the time between a job opening and a job being filled.
We’ve all heard the old adage, "time is money." The application in recruiting is pretty simple: the less time it takes to fill an open position, the more money an organization can save. Savings come in the form of cutting down on overtime wages for other staff, cutting down on lost productivity while a new hire is being considered, and reducing the amount of time they are enlisting an agency to help. The faster roles are filled, the sooner a company will be able to operate at maximum capacity.
Companies currently tracking time to hire know that the current job market is costing them both time and money. Currently, the time to hire trends for technical roles in particular extend well beyond the averages from prior years. This is due to low unemployment, high demand, low supply, and skills gaps. In-house teams are finding it increasingly difficult to keep their organizations fully staffed. Moreover, many companies end up losing out on the best candidates due to timing: more layers in the interview process to identify qualified candidates means a higher probability of losing to a competitor that moves more quickly.
Skilled recruiters are adept at reducing time to hire and making the hiring process more efficient overall. Primarily, this is accomplished through industry expertise and economy of scale. A firm with deep experience in the same industry as a company seeking new employees will be able to understand their client's organization and the specific demands of the open position. They will also likely have a broad range of contacts in the industry. Then there's economy of scale; recruiting firms are, well, always recruiting. A deep understanding of the trends in job posting and recruiting, coupled with a near-constant flow of applications, simply makes a firm more efficient at sourcing candidates and filling open positions. They will also be able to assist a company in optimizing its recruiting process to streamline hiring.
In today's competitive environment, companies can't afford to miss out on the benefits of reducing time to hire. Micro Tech Staffing Group has been working with companies for more than three decades to make their talent acquisition process as effective and efficient as possible. If you're looking to hire, let us show you how we can improve your process.