What is time to hire?

Time to hire

Hiring new employees is an essential function of human resources teams. While vacant positions undoubtedly must be filled, determining the right timeline depends on many factors unique to each business. Companies wondering how to reduce time to hire must do due diligence before determining the right pace for their organization.

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What is the average time to hire a new employee?

The average time from application to hire depends on a variety of factors including industry, company size, job level, location, and more. When determining the average time to hire by industry, hiring managers often consider the urgency of the vacancy and how long the company can successfully operate while the hiring process takes place. 

A company’s distinct recruiting process also plays a large role in the average time to hire an employee. 

What factors affect the average time to hire?

Hiring timelines might vary depending on the role and industry, such as a software engineer versus a designer in the tech sector. Seniority can also be a variable. For example, some companies may require a graduate degree for certain higher level positions, while other companies might seek to hire only entry-level candidates. The energy sector requires specialized skills and education, which can lengthen the time to hire, while the growth of e-commerce has shortened that industry’s hiring timeline.

How to calculate time to hire

The employment landscape continues to transform, and the average hiring time remains fluid. Average time to hire statistics have changed significantly in the last few years. This means that businesses are tasked with staying current with hiring best practices specific to their industries and reviewing internal practices. 

More organizations are relying on software to gain insight into their hiring statistics and develop their average time to hire formula. This approach allows for a data-backed strategy that can be used to reduce time to hire overall. When figuring out how to calculate time to hire in Excel, for example, data can be easily manipulated to adjust for certain factors so the hiring process can be geared towards rapid growth or stability. 

Time to fill vs. time to hire

Time to fill vs. time to hire are often confused. Time to hire refers to the length of time from when a candidate applies for a position to when they accept that position. On the other hand, time to fill measures the time it takes for the entire hiring process, from when a job is posted to when a candidate accepts the position. The average time to fill vs. time to hire for a position might vary based on factors like industry, position, and salary. 

Average time to hire in 2022 

When it comes to average hiring times, 2022 proved a more difficult year for companies than the previous year. According to a Robert Half study in 2022, the average time to hire was 11 weeks, compared to seven weeks in 2021. 

Average time to hire in 2023 

Time to hire can be difficult to determine, as there is a long list of tasks that must be completed before a new employee can be brought on board successfully. This process can include posting the job, reviewing resumes, conducting interviews, verifying references, and completing other administrative tasks. While, on average, it can take from 23 to 29 days to hire a new employee, from final job posting to final offer, these figures may differ greatly from the average time to hire in the tech industry in 2023. 

Determining the right time to hire can be a difficult task for businesses. However, by considering time to hire benchmarks and other hiring practices, human resources managers will be better qualified to hire new employees within a time frame suitable for their respective companies.

About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.