I believe one of the key metrics in recruiting is time to fill. It’s also a very flexible metric.
Traditionally, we think of time to fill as the time it takes from the job requisition being approved to the job offer being accepted. If the requisition is approved on April 1 and the job offer is accepted on April 29, then time to fill for that one job is 29 days. I’ve worked places where they also wanted to know time to start, meaning how many days until the employee’s first day. Using the same example, if the requisition is approved on April 1 and the employee starts work on May 15, then time to start is 45 days.
The reason I think this is an important metric is because time to fill has an impact on how companies make decisions.
Today’s infographic from our friends at iCIMS, shows data from their 2015 Hiring Trends report. Chief among the findings is the time it took employers to fill a job which averaged 44 calendar days.
An elongated time to fill can create challenges for employers which can affect their bottom line. CEB’s Global Labor Market Survey projects the average vacancy cost as $500 per day per open position. That means during the 44 days that companies are trying to fill a job, they are losing $22,000 in recruiting costs and productivity.
The full report and findings have lots of insights that can be helpful, especially during recruitment planning meetings. Also check out the interactive graph which displays talent supply/demand averages.
Recruiting dynamics aren’t getting any easier. Organizations that know their time to fill can put measures in place to mitigate losses. It could be utilizing a contingent workforce or temporary staffing. There’s also a case to be made for building a strong talent pipeline. It’s a clear example of how time really is money.
P.S. If meeting your recruiting goals is tops on your priority list, I hope you’ll join me and the iCIMS team on Tuesday, May 17 for a webinar on “How Companies Can Meet (and Exceed!) Their 2016 Recruiting Goals.” If you’re already booked that afternoon, remember you can sign up and listen to the archive later. The session is pre-approved for credit by the Human Resource Certification Institute (HRCI.)