If your hiring process is falling short, there could be a number of reasons. You may be getting poor candidates, have high turnover or have candidates who step down on your offer without explanation. However, one of the most common problems is that hiring takes too much time and as a result, hurts your bottom line. Time to hire is the underlying metric behind this – here’s what it is, how to calculate it and make it shorter.
What is time to hire and how to calculate it?
This is one of the most important recruiting metrics for today’s companies and HR teams. Simply put, time to hire is the time period between the day your final candidate applies for a job and the day they accept the offer.
Let’s say that you have a job opening and it takes 40 days to find the right person for the job. This is your time to fill. However, your ideal candidate applied on day 12. Your time to hire is the total time of the hiring minus the day the candidate got hired.
In our case, it’s 40-12 = 28, meaning that our time to hire is 28 days. Whether that’s good or not, it really depends on your industry.
One thing is for certain, your time to hire needs to be as short as possible.
Why is a short time to hire important?
The first reason is to improve the candidate experience. As you take weeks to go through a pile of applications in your inbox, the candidate has already moved on to another job ad. As we’ve written before, the best talent is off the job market in just ten days, so you need to act quickly.
The second reason is that it takes too much money to have a long hiring process. You’re probably well aware that each day a company goes with an unfilled position costs money. In fact, research has shown that vacant positions in the US tech sector make as much as $20 billion in damage every year. Also, as we’ve written, the cost of hiring an individual employee ranges anywhere from $4,000 to $7,000.
Finally, if you make a new hire quickly, you can move on to finding the next role. If you have to hire a lot of new employees in a short time frame, having a great time to hire is essential.
Why does hiring take so much time?
One of the main reasons is that you may have missed your sourcing channel. It’s not that there’s a lack of great candidates, you’re probably just looking in the wrong places. You may be putting a strong focus on job boards, but the best candidates don’t really hang out in those places because they’ve already got a job.
The second reason is that there’s a bottleneck in your application process. Often times it happens that candidates don’t really feel like filling out lengthy application forms and sending in their resumes. This can easily dwindle the number of applicants.
Finally, the biggest culprit is that you’re taking too much time on unqualified candidates. If your application process is based on resumes, you’ll spend hours going through poor candidates to get to the right ones.
So, how do I reduce my time to hire?
The first thing that you can do is to look for different sourcing channels. Instead of spending time on job boards, focus your attention on social media, paid ads, Slack groups… Be where your candidates are. As mentioned, you want the best candidates, not those who happen to be looking for a job at the moment. For us, we found Facebook ads to work particularly well. We used laser-precision targeting to get in front of those applicants we really wanted for our openings.
The second way to reduce time to hire is to get rid of the resume from the hiring process. There are multiple problems with resumes (inaccurate information, lack of standard format, not easy to validate information, etc.), but there’s one that impacts time to hire the most – the time it takes to review them.
You will read all over the internet that the average recruiter spends mere seconds on a resume. In reality, you need at least a few minutes per resume to make a decision on whether the candidate goes to the next round or not. With 500 applicants needing 5 minutes each, your time to hire is not looking good. This is exactly why we created Hundred5.
So, how does Hundred5 shorten your time to hire?
Hundred5 works well in all stages of the hiring process, but there’s one where it excels – the screening. The majority of your time is spent here, as you need to cut down the choice from hundreds of applicants to a select few to call in for the interview.
Instead of asking for their resumes, you can present candidates with a pre-employment skills test on the Hundred5 platform. For example, a test for a Java developer will have questions regarding that specific role. The client takes the test and you see their results on your dashboard.
As a result, you can immediately see who can do the job and who is bound to waste your time. You can set the threshold for passing as low or as high as you like. That way, Hundred5 does the screening for you, and you can rely on candidate skills, not keywords in their resume.
The numbers speak for themselves. One of our biggest clients is our sister company Toggl, which hired 68 people using Hundred5. They get an average of 1,500 applicants per position because they hire remotely all over the world. As a result, they would spend hours going through resumes. Once they started using Hundred5, they were able to save 22 hours per single opening and cut down their number of interviewed candidates before hiring by 72%.
If you’d like to take Hundred5 for a spin and see how it can save you 22 hours per single opening – book a demo today.