Introduction to the Time to Hire KPI
The Time to Hire KPI measures how long it takes to move a candidate from initial contact to accepting a job offer. It’s one of the most important recruitment metrics because slow hiring processes can lead to losing top talent, increasing costs, and lowering team productivity.
What Is Time to Hire?
Time to Hire tracks the number of days between when a candidate enters the pipeline and when they officially accept the offer. The formula is:
Time to Hire = Date Candidate Accepted Offer – Date Candidate Entered the Pipeline
This KPI reflects how quickly and efficiently a company evaluates, interviews, and selects qualified candidates.
Why This KPI Matters
Time to Hire offers valuable insight into recruitment performance. It helps organizations understand:
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Efficiency of the hiring and interviewing process
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Candidate experience and engagement
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Bottlenecks in sourcing, screening, or decision-making
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Competitiveness in attracting top talent
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Resource needs for HR and recruitment teams
Shorter hiring times reduce cost per hire and improve overall talent acquisition success.
How to Use This KPI Effectively
Companies often analyze Time to Hire by role type, department, recruiter, or hiring manager to identify delays. When combined with KPIs like Cost per Hire, Offer Acceptance Rate, Candidate Quality, and Applicant-to-Hire Ratio, Time to Hire becomes a powerful tool for building faster, more effective recruitment processes.