Formula
Time to Hire = (Date of Hire – Date Job was Posted)
Calculation Example
If a company posts a job on June 1 and hires on June 30, Time to Hire = 30 days
Data Source
HR systems, applicant tracking software
Tracking Frequency
Monthly, Quarterly
Optimal Value
Shorter is better; under 30 days is optimal.
Minimum Acceptable Value
A long time to hire may lead to lost talent and reduced productivity.
Benchmark
Industry benchmarks: Tech ~30-45 days, Retail ~15-25 days, Healthcare ~40-60 days
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare departments)
How It Appears in Reports
Displayed in HR reports to assess recruitment efficiency.
Why Is This KPI Important?
Indicates the speed and effectiveness of the hiring process.
Typical Problems and Limitations
Does not account for job complexity; specialized roles take longer to fill.
Actions for Poor Results
Streamline recruitment processes, improve employer branding, automate candidate screening.
Related KPIs
Cost per Hire, Employee Turnover Rate, Productivity per Employee
Real-Life Examples
A tech firm reduced time to hire from 45 to 25 days by implementing AI-driven candidate screening.
Most Common Mistakes
Focusing only on speed without ensuring candidate quality.
