At the start of 2023, we covered some of the expected hiring trends throughout the year. Now, we’re taking a look back to see which of those trends impacting hiring efforts for employers. Dive into the hiring challenges faced by recruiters and managers in 2023 as we prepare to start a new year.
2023 Hiring Trends
We mentioned internal movement as an expected trend, and that was certainly a thing in 2023. Internal mobility is a significant factor in employee retention and loyalty, so creating and offering opportunities for existing team members to advance are essential in your strategy. Contract or gig work also expanded substantially this year, with approximately 59 million people in the U.S. working in such roles. The demand surged significantly, and by 2027, it’s estimated that over 85 million Americans will perform some type of gig work.
Company culture remains an influential factor in the hiring market. It’s becoming more and more challenging for workplaces with toxic or unsupportive atmospheres to bring on and retain top talent. Investing in culture is a must for a business, regardless of size, to improve hiring efforts. Another trend was identifying ways to allow employees to integrate their personal and professional lives, rather than just separating and balancing them.
Challenges in Hiring This Year
Recruiters and hiring managers faced unique challenges associated with these trends and economic swings in 2023.
Finding top talent
One of the most commonly discussed difficulties was finding quality candidates. Intense competition and low unemployment rates contributed to this challenge, which plagued employers of all sizes. However, small businesses tend to struggle the most with finding top talent, as they may have trouble getting their open positions in front of a wider audience. The right applicant-tracking system can make this easier, with tools to share job descriptions to hundreds of sites with a single click.
Training and skills gaps
It’s hard to keep employees engaged and happy if they don’t feel like their employer is investing in their growth and development. Skills and training gaps are significant issues in workplaces that haven’t made learning and development a priority. When these elements are lacking, people often look elsewhere, resulting in higher employer turnover rates.
Unpredictability in the job market
The economy has played a serious role in hiring and growth efforts among businesses of all sizes and across all industries. Instability and unpredictability have resulted in fewer people looking elsewhere for work, instead choosing to remain where they are to feel more stable. Layoffs in many industries have forced others into the job market, requiring creativity and adaptability among those responsible for filling open positions.
Younger jobseeker preferences
If your hiring tactics are geared toward baby boomers or millennials, you may be having trouble attracting younger jobseekers. Members of Gen Z expect their workplaces to prioritize digital communication and collaboration, and this expectation starts with the hiring process. Without a proven solution in place that simplifies the hiring process, your company likely won’t get in front of Gen Z applicants.
The best tool for overcoming these and other challenges impacting hiring managers and recruiters is an applicant-tracking system. ApplicantStack aligns with your needs while fitting into your small-business budget. Explore how this hiring and recruiting system can help you take your efforts to the next level and build strong teams, despite the difficulties.
Pay transparency laws are popping up in states and cities throughout the U.S., forcing employers to take a look at their job listings. Find out what you need to know about pay transparency, including what it means and aims to achieve, how to comply with applicable laws, and the tools built into ApplicantStack that support these needs.
What is Pay Transparency?
Pay transparency is a term referring to the disclosure of compensation standards for employees. It may refer to information being shared internally, as well as externally. In recruiting discussions, the concept often comes up when talking about whether salary ranges should be included in listings. But overall, transparency in compensation is a spectrum, so employers often choose just how open they are with what employees can expect in terms of pay.
Pay Transparency vs. Pay Equity
In conversations around pay transparency, the concept of pay equity may come up. The two differ, as pay equity is the concept that those performing equal work deserve equal pay, regardless of the age, gender (or gender identity), race or religion of the individual in the role.
The Equal Pay Act, which went into effect in 1963, legislated the concept of pay equity, yet organizations may still pay different wages for individuals. Pay transparency can serve as a mitigator to unfair compensation practices, as employees have a better idea of what they can expect to be paid in a specific role.
Pay Transparency Laws
In some areas, pay transparency laws are in effect, requiring eligible organizations to disclose how much an employee will be paid in a specific role. Some states have laws requiring the provision of pay ranges for every position posted, while others require pay ranges to be furnished upon request or by a specific point in the interview process.
Although no federal law is currently in place, multiple states have laws focused on pay transparency.
Alabama: An employer may not refuse to interview, promote or hire/employ an applicant based on the individual not providing pay history.
California: Private and public employers may not seek candidate pay history, and employers with 15+ employees must include pay ranges in all job postings.
Colorado: Employers may not seek candidate pay history or use past information to determine wages. Employers must disclose salary or hourly compensation (or a range) and a general description of benefits and other compensation in all job postings.
Connecticut: Employers may not seek candidate pay history and must disclose the pay range for a position upon applicant request or when an offer is extended to an applicant. For internal employees, employers must provide pay ranges upon request or when a change in position occurs.
Delaware: Employers may not seek candidate pay history, although they may confirm the information after extending an offer.
District of Columbia: Government agencies may not seek candidate pay history.
Georgia: City agencies in Atlanta may not seek candidate salary history on an employment application.
Hawaii: Employers may not seek candidate pay history and employers must provide the hourly rate or salary range for advertised positions.
Illinois: Employers may not seek candidate pay history, although they may discuss expectations. Employers with 15+ employees must include pay ranges in all job postings. In Chicago, city departments may not request salary history.
Kentucky: In Louisville, city agencies may not request salary history. No statewide law is in effect.
Louisiana: In New Orleans, city employers may not request salary history or screen applicants based on prior or current pay, benefits or other compensation. No statewide law is in effect.
Maine: Employers may not seek candidate pay history until an offer has been extended.
Maryland: Employers may not seek candidate pay history but can confirm this information voluntarily provided by an applicant after extending an offer. All employers must also provide a pay range to an applicant. Montgomery County further restricts the county government from relying on salary history as a factor in hiring or establishing the pay rate for an applicant.
Massachusetts: Employers may not seek candidate pay history but may confirm the information after an offer has been extended or the applicant provides it voluntarily.
Michigan: State departments may not seek pay history until a conditional offer has been extended.
Mississippi: In Jackson, city agencies may not seek candidate pay history. No statewide law is in effect.
Missouri: In St. Louis, city departments may not seek candidate pay history. In Kansas City, employers with six or more employees may not ask for or rely on salary history when offering employment or determining salary, benefits or other compensation. No statewide law is in effect.
Nevada: Employers may not seek candidate pay history and employers must provide the hourly rate or salary range for advertised positions. They must also provide the pay range for those eligible for promotion or transfer within the organization.
New Jersey: Employers cannot screen applicants based on pay history. In Jersey City, employers with five or more employees must disclose the salary or hourly range and benefits for all job listings and promotion and transfer opportunities.
New York: Employers may not seek candidate pay history, and employers with four or more employees must provide the hourly rate or salary range for advertised positions. Specific counties and cities have additional stipulations in place around these laws.
North Carolina: State agencies may not seek candidate pay history.
Ohio: Employers with 15+ employees in the cities of Cincinnati, Columbus and Toledo may not seek candidate pay history. Those in Cincinnati and Toledo must also share the pay scale for all open positions.
Oregon: Employers may not seek candidate pay history until an offer has been extended.
Pennsylvania: Employers may not seek candidate pay history at any stage during the hiring process. All postings must also clearly disclose pay scale and range.
Rhode Island: Employers may not seek candidate pay history or rely on this information when considering making an offer or determining pay. Employers must provide the pay rate or range to an applicant upon request, as well as to an employee upon request throughout their employment.
South Carolina: In Columbia and Richland County, city and county agencies may not seek candidate pay history. No statewide law is in effect.
Utah: City agencies in Salt Lake City may not seek candidate pay history. No statewide law is in effect.
Vermont: Employers may not seek candidate pay history.
Virginia: State agencies may not seek candidate pay history.
Washington: Employers may not seek candidate pay history. Employers with 15+ employees must disclose the salary range or wage scale and a general description of all other compensation and benefits in every job posting.
The states not on this list do not currently have pay transparency laws in place.
The Benefits of Embracing Pay Transparency
Jobseekers are often looking for transparency to avoid wasting their time applying for positions that don’t align with their financial expectations or needs. Additionally, companies can protect themselves and support their team members by demonstrating a commitment to fair pay practices in all positions. Building trust is another advantage, as an employee is more likely to feel like they can trust an employer with honest and open practices around compensation.
According to an article recently published by SHRM, pay transparency may play a role in reducing employee turnover. The article outlined research performed by Payscale, a compensation software firm based out of Seattle, Washington. This information indicated that the intent to quit declines by 30 percent among employees working for companies that offer pay transparency. Open communication around pay and the potential for growth are essential in demonstrating a forward-thinking and supportive atmosphere, making your company one that jobseekers want to work for.
Using ApplicantStack to Ensure Transparency in Open Positions
With the right hiring and onboarding software, maintaining compliance with pay transparency regulations is easier. ApplicantStack is an excellent tool for businesses of all sizes, offering integrations with top job boards. You can even use the Indeed integration to review salary ranges for similar positions and incorporate pay data into your listing templates. Hire faster and better while building trust and transparency as an employer.
With Thanksgiving coming up, you may be thinking about what you’re thankful for and how those things impact your life. But as a small business owner, it’s worth considering your recruiting process and how it impacts the organization’s ability to grow and succeed. In this article, we’re outlining the benefits of improving how you bring on new hires and why those are worth giving thanks for this holiday season.
Understanding the Onboarding Process
Onboarding is a term that includes all the tasks associated with bringing a new onboard into your organization. It begins when someone accepts an offer, and you start planning for their arrival on the team. Examples of onboarding activities include new-hire orientation, training, support from a mentor, and even a tour of the office or workspace.
Orientation is an important aspect of a new hire’s first day, but it differs from onboarding. When you think about orienting someone to a new role, your mind might imagine stacks of paperwork and an introduction to the company mission and values.
But onboarding goes a step further than orientation, as its purpose is to help a new employee feel comfortable and confident in their new role. This comprehensive process can take up to a year to fully complete, and it should involve many people throughout the company.
Every new hire goes through some type of onboarding process but a more robust experience can have a significant positive impact on retention and satisfaction. Gallup data shows that only 12 percent of employees felt good about their onboarding experience.
Additionally, those in that group were three times more likely to report that they have the best possible job. Less than a third of new hires surveyed felt supported and prepared to excel in a new role. These statistics indicate plenty of room for improvement.
5 Reasons to Give Thanks for Better Onboarding
Now, let’s dive into some of the reasons to give thanks for improved onboarding.
Positive employee experience
In today’s economy, it’s more important than ever to provide a positive experience for your employees. People have more options when it comes to finding work, especially in positions and industries that require fewer skills. Make sure your new hires feel supported and excited about their future with your organization by investing in a positive onboarding process.
Improved engagement
Engagement is one of the most essential aspects of managing a workforce. Engaged employees work harder, are more productive, and contribute significantly to the success of a business. But unfortunately, only 33 percent of American employees report being engaged, and 16 percent report being actively disengaged.
A new hire’s first experience with how your organization engages with them occurs during the recruiting and hiring process. But onboarding also plays a role in the overall experience, which has a direct correlation to engagement.
Enhanced retention
Retaining top talent can be a real challenge but onboarding may be the secret sauce your company is currently not using. Nearly 70 percent of employees are more likely to stick around with an organization if they had a great onboarding experience. When you compare that stat with the overall cost of bringing on a new hire, you can see just how important onboarding is in retention efforts.
Increased productivity
A successful onboarding process can reduce the learning curve for new hires, helping them to feel more confident in their roles. As a result, they can get up and running faster, which means they’re more productive. Great onboarding can also minimize how long it takes to become proficient with different tasks and responsibilities.
Supportive company culture
Regardless of the size of your business, you should recognize the value of building a supportive and positive culture. And employees need to understand the culture and what to expect from the moment they consider working for your organization.
Providing a positive and consistent onboarding process for every new hire goes hand-in-hand with the culture you want to build and cultivate. By contrast, high turnover rates contribute to a toxic culture, making it difficult to get good people to stick around.
ApplicantStack Can Take Your Efforts to the Next Level
Are you already giving thanks for these benefits of better onboarding? Or, could your company’s process still use some work? With ApplicantStack, a powerful hiring and onboarding solution built for small business, you can maximize your efforts without overspending.
This budget-friendly platform is ideal for creating consistency and providing support to new hires being brought on board. Learn more by taking a brief video-based tour.
As a small business owner, building your team probably took a lot of time and effort. Hiring the right people is vital to the growth and success of your organization, so the last thing you want to worry about is high turnover. Since employee retention rates are linked to overall satisfaction at work, it makes sense that stronger, more cohesive teams tend to have employees who stick around. Explore our seven team-building tips for small business owners, along with the benefits of building stronger teams.
The Importance of Building Strong Teams
Team-building efforts can go a long way toward creating supportive and effective teams. Some of the activities involved in building your team can boost critical functions, including collaboration, communication, productivity, and morale. Additionally, when the people on your team feel like they can trust one another, they often feel more comfortable sharing ideas and making decisions together.
6 Benefits of Stronger Teams
In addition to the benefits outlined above, team-building efforts can deliver the following advantages:
Improved collaboration
Opportunities to learn and build new skills
Enhanced workplace happiness
Reinforced loyalty and commitment to the team
Improved decision-making efforts
Better talent retention
7 Team Building Tips for Any Small Business Owner
Now that you understand the importance of a stronger team, use these seven tips to build up your workforce and reap the benefits.
Consider unique options
Most people working in the corporate world have participated in at least one team-building activity, and they may not look upon it with great fondness. Instead of opting for the same team-building activity that everyone has already done before, try something different.
Sign up for a group fitness class and grab smoothies afterward to chat. Take a tour of a local museum and share insights into what you saw. Thinking outside the box can create a more engaging experience for everyone involved.
Emphasize the interests and strengths of the team
As you consider what activities to offer to build teams, think about what each member is good at and plan accordingly. Indeed data reports that 98 percent of workers perform better when feeling confident, so give them the chance to succeed by playing to their strengths.
If you’re not sure where people thrive, take the time to get to know them and their unique abilities. Assign tasks based on stronger skills and provide coaching and development opportunities in areas where team members may feel they struggle. These efforts will pay off significantly in the long run, making them worthwhile investments into employee retention.
Be a better leader
When you want your team to collaborate and work together as a strong, unified unit, you have to lead by example. If the workforce sees you pitching in when needed or giving feedback on a project, they’re more likely to follow suit. By contrast, if you aren’t leading by acting the way you want employees to act, you may encounter struggles or even experience higher turnover rates.
Address conflicts head-on
Of course, not all teams will function smoothly at all times. Conflicts happen – they’re par for the course when dealing with differing opinions and roles. Do your best to address these issues head-on, rather than waiting for them to fester and become worse.
Scheduling regular team-building activities can strengthen bonds and encourage members to share their feedback in a more positive and constructive way. Keeping up with the needs of every member of the team can also make a big difference, particularly if you can encourage collaboration between individuals who you feel will work well together.
Ask for feedback
No one wants to feel ignored at work (or anywhere else). Make sure your employees know you’re open to their feedback, and ask for it regularly when considering how to improve morale and boost the strength of teams. When people are willing to speak up, acknowledge their comments and speak to how you plan to address their opinions. If you’re having trouble getting feedback, consider implementing anonymous surveys so team members can speak their minds freely without fear of pushback.
Incorporate opportunities for professional development
When you have individuals on your team who aim to climb the corporate ladder, opportunities for professional development are always appealing. After all, these workers tend to look for ways to get ahead and learn new things. By investing in regular development for your teams, you can demonstrate support while building cohesion. Plus, employees get access to the tools they need to succeed, which benefits the entire organization.
Implement continuous opportunities to work together
Team building isn’t a one-and-done situation. Rather, it’s an ongoing process that requires constant check-ins. Look for ways to encourage teams to work together, both in and out of the office. If you don’t feel like things are going well, be open to change. Try new activities and offer opportunities for members of your workforce to collaborate and build trust.
These tips can help you build a foundation for ongoing team-building efforts within your organization. You may find that employee retention rates go up as people feel supported, valued, and needed within the company. Taking advantage of all the tools at your disposal is also valuable.
Bringing a new hire onboard? It’s an exciting time, although it can also create a lot of extra work for all involved. Communication is one of the keys to ensuring a smooth and consistent process, and that often includes some digital messaging. Check out our guide to welcome emails for new hires with helpful templates you can incorporate into your own process.
What is a New Hire Welcome Email?
A new hire welcome email is a digital communication that prepares a new employee for their first day at work and future responsibilities. It serves as a virtual handshake, ensuring that a new hire feels welcome and excited about their new role. This message can also reduce some of the first-day jitters that often come with starting a new job.
The Purpose of a Welcome Email for a New Employee
A new hire welcome email can serve multiple purposes. In most cases, it exists to provide important information to a newcomer to the team, such as logistics around the first day of work and what to expect. A welcome email for a new employee can also support the onboarding process, maintaining a consistent line of communication.
It will set the tone for the overall experience of the new hire and may include introductions to team members and others who will be involved with the employee. Additionally, your welcome email can let others in the company know that the new person will be starting, their role, and expectations.
What to Include in a Welcome Email
Make sure your email includes the following items:
Position title and department
Start date
Shift times or working hours (if applicable)
Schedule for first day or week
Contact details for manager, HR rep, other relevant team members
Information about physical location, like parking space, what to wear/bring, etc. (if applicable)
9 Employee Welcome Email Templates
Need some inspiration? Here are nine templates to use for different situations, including remote vs. in-person new hires, casual vs. buttoned-up cultures, etc.
Welcome to the team template (in-person)
Dear team,
I’m excited to announce that [new hire’s name] will be joining our department as [title]. [Name] will start with us in the office on [first day] and report to [supervisor name]. [His/her] workstation will be located [outline location], so please stop by and say hi during the first week.
In this role, [name] will handle [list responsibilities]. This individual joins us with [number of years] of experience in our industry, including several years with [name of last company]. Please extend a heartfelt welcome to [name] in this new role and help [him/her] feel like part of the team!
Thank you, [Your name]
Welcome to the team template (remote)
Dear team,
I’m excited to announce that [new hire’s name] will be joining our department as [title]. [Name] will start with us on [first day] and report to [supervisor name]. As a fully remote employee, [name] will be online during our normal business hours: [list hours and time zone].
In this role, [name] will handle [list responsibilities]. This individual joins us with [number of years] of experience in our industry, including several years with [name of last company]. Please send a quick note to extend a heartfelt welcome to [name] in this new role and help [him/her] feel like part of the team!
Thank you, [Your name]
Introducing new hire to organization (in-person)
Hi everyone,
We’re pleased to announce the recent hiring of [new hire’s name], who will be joining our [department name] department as a [job title]. [Name]’s first day will be [date], and [he/she] will be working in the office alongside many members of the team.
Please take a few moments to stop by [his/her] workstation, located [outline location] to introduce yourself and welcome [him/her] to our organization. We look forward to continuing our success as a team.
Sincerely, [Your name]
Introducing new hire to organization (remote)
Hi everyone,
We’re pleased to announce the recent hiring of [new hire’s name], who will be joining our [department name] department as a [job title]. [Name]’s first day will be [date], and [he/she] will be working remotely in the [time zone] time zone.
Please take a few moments to send a quick message to introduce yourself and welcome [him/her] to our organization. We look forward to continuing our success as a team.
Sincerely, [Your name]
Background spotlight template
Hi team,
Let’s welcome our newest member: [new hire name]
[photo of new hire]
[Name] has worked in [industry] for [number of years] years and brings extensive knowledge to [his/her] role. [He/she] will be responsible for [list responsibilities] as part of our [dept. name] department.
[Name] also enjoys [input hobbies/interests]. We look forward to welcoming [him/her] to [company name] and hope you’ll join us in sending a quick message or stopping by [his/her] workstation to say hello.
Thank you, [Your name]
First day logistics email template (in person)
Hello [new hire name],
We’re looking forward to your first day with [company name] and hope you are too! We’re confident you’ll be an excellent asset to the team and want to help you feel settled and ready to get started.
As discussed, your first day of work will be [date]. Please arrive to the office by [time], where [HR rep or manager name] will be available to greet you. Our office dress code is [outline dress code].
Upon arrival, check in with the receptionist and let her know you’re here to see [HR rep or manager name]. You’ll meet with [fill in first contact here] and get your [badge/key/card/etc.] [First contact name] will also show you around the office and introduce you to some of your team members.
We’ll have lunch together as a team, so plan to take some time on your first day to enjoy that. Feel free to contact me at [email address/phone number] with any questions. We look forward to seeing you on [date of first day].
Sincerely, [Your name]
First day logistics email template (remote)
Hello [new hire name],
We’re looking forward to your first day with [company name] and hope you are too! We’re confident you’ll be an excellent asset to the team and want to help you feel settled and ready to get started.
As discussed, your first day of work will be [date]. Please arrive to the office by [time], where [HR rep or manager name] will be available to greet you. Our office dress code is [outline dress code].
Upon arrival, check in with the receptionist and let her know you’re here to see [HR rep or manager name]. You’ll meet with [fill in first contact here] and get your [badge/key/card/etc.] [First contact name] will also show you around the office and introduce you to some of your team members.
We’ll have lunch together as a team, so plan to take some time on your first day to enjoy that. Feel free to contact me at [email address/phone number] with any questions. We look forward to seeing you on [date of first day].
Sincerely, [Your name]
First day agenda template (in person)
Dear [new hire name],
On behalf of [company name], I’d like to welcome you to the team! We look forward to the knowledge and expertise you will bring to the role.
As we discussed, your first day will be [date]. Please review the following agenda so you know what to expect on your first day of work.
On [date], please report to [office location] and check in with the receptionist. You’ll meet with [fill in first contact here] and get your [badge/key/card/etc.]
[First contact name] will also show you around the office and introduce you to some of your team members. Following this introduction, you can plan on the following schedule:
[Event 1: Date, time, location, description]
[Event 2: Date, time, location, description]
[Event 3: Date, time, location, description]
[Event 4: Date, time, location, description]
We understand that starting a new job can feel overwhelming, so we’re doing everything we can to help alleviate your stress and prepare you for what to expect. Please don’t hesitate to reach out if you have any questions. We look forward to seeing you on [date].
Sincerely,
[Your name]
First day agenda template (remote)
Dear [new hire name],
On behalf of [company name], I’d like to welcome you to the team! We look forward to the knowledge and expertise you will bring to the role.
As we discussed, your first day will be [date]. Please review the following agenda so you know what to expect on your first day of work.
On [date], please sign into [communication tool]. You’ll virtually meet with [first contact name] to get settled and up to speed on the plan for the day. You can also sign into your email account using the credentials provided to view your schedule.
[First contact name] will introduce you to some of your team members. Following this introduction, you can plan on the following schedule:
[Event 1: Date, time, location, description]
[Event 2: Date, time, location, description]
[Event 3: Date, time, location, description]
[Event 4: Date, time, location, description]
We understand that starting a new job can feel overwhelming, so we’re doing everything we can to help alleviate your stress and prepare you for what to expect. Please don’t hesitate to reach out if you have any questions. We look forward to interacting with you online on [date].
Sincerely, [Your name]
Feel free to use these templates as you draft initial emails for new hires. Maintaining consistent and helpful communication is one of the best tools in the onboarding process.
You can also take advantage of the onboarding features built into ApplicantStack, an all-in-one recruiting platform that’s built for small businesses. With helpful templates, tools to text and email candidates, and other powerful features, this solution is perfect for any organization that needs to fill open roles.
The recruiting process is much more in-depth than it appears on the surface. Recruiters and HR professionals are often measuring key performance indicators (KPIs) behind the scenes to optimize processes, increase candidate engagement and boost the quality of their potential hires.
Further, tracking metrics, such as time-to-fill, helps recruiters communicate the value of what they do and the effectiveness of an employer’s investment in recruiting activities, improving the hiring processes over time.
As one of the more popular recruiting KPIs to measure, time to fill sounds and feels similar to other important metrics. Here, we’re defining what time to fill means, how to calculate it, how it’s different from time-to-hire and more.
What Is Time-to-Fill and How Do You Measure It?
In simple terms, time-to-fill is a recruitment KPI that measures the average amount of calendar days it takes your organization to fill an open role with a new candidate. The measurement generally starts when you get job requisition approval and/or actually post the listing, and ends when a new hire accepts your job offer.
Some organizations may choose a slightly different starting point based on their unique circumstances, but measuring from the date when the role is first advertised is the most standard, and a bit easier to manage.
What Impacts Time-to-Fill?
There are quite a few factors that can affect time-to-fill, most of which are outside of an organization’s control or are simply a product of the role itself. Components that can alter time-to-fill include:
The role itself, i.e., its complexity or what’s being asked of candidates
The job market
The quality of candidates that apply
Your organization’s hiring process
As an example, if the open role requires highly specialized skills, it can take longer to find a suitable candidate. Similarly, if your interview process includes multiple rounds of interviews or requires candidates to submit a video, the time to fill will be longer.
For reasons like these, it often makes sense for employers to measure time-to-fill by department or role. Doing so can help clean up the numbers and leave you with an even more accurate snapshot of time-to-fill metrics throughout the organization.
How To Calculate Time-to-Fill
Calculating time-to-fill is fairly straightforward. To determine it, sum the number of calendar days for each position you filled during a specific timeframe (i.e., a year or a quarter) and divide that sum by the number of hires during that time.
For example, if you hired three new employees in a year, spending 10, 15 and 20 calendar days respectively to move from requisition to offer acceptance respectively, here’s what the formula would look like:
10 + 15 + 20 / 3 = 15
In this case, your average time to fill is 15 days.
Time-to-Fill vs. Time-to-Hire
A similar-sounding recruitment metric, time-to-hire is often confused with time-to-fill and vice versa. However, the two KPIs are distinct and serve separate purposes.
Here’s a brief comparison:
Time-to-fill measures the average number of calendar days between an organization deciding to open a new job position or posting the listing, and having a candidate accept the job offer.
Time-to-hire highlights the amount of time between when you receive an application for a role (i.e. when a candidate enters the funnel) and when a job offer is accepted.
Same endpoint, different starting point.
Why Is Time-to-Fill Important?
Beyond the more tangible benefits that will be outlined below, there are a few additional reasons why measuring time-to-fill is important for your organization:
It provides a quick reference point: If you find that your time-to-fill is significantly higher than industry benchmarks, which in 2023 is an average of 44 days, it’s a pretty clear sign that making a change may be a good, strategic play.
It helps you evaluate the effectiveness of your recruitment strategy: Striking a balance between too short and too long a time-to-fill is essential. Measuring your recruiting KPIs can give you insight into what’s working well and what needs to change to optimize the candidate experience.
It can help gauge changes in the labor market: The economy is in constant flux, which means the labor market is, too, influencing recruiting and hiring trends. If you historically have had a low time-to-fill and you notice it trending upwards, you can better prepare for changes and take proactive steps to optimize your hiring process.
But what about more tangible benefits?
The Benefits of Measuring Time-to-Fill
Recruitment metrics, in general, help recruiters optimize their organization’s hiring process by highlighting areas for improvement, identifying practices that are working well and more.
Time-to-fill specifically, however, offers a few unique advantages for employers.
Streamlined Hiring
Tracking time-to-fill helps organizations identify bottlenecks and inefficiencies in their recruitment process. By pinpointing where delays occur, companies can take corrective actions to streamline hiring procedures.
Common recruiting bottlenecks include:
Indecisive or overly critical hiring managers
Too many unqualified applicants
Manual candidate screening
If you notice that your time-to-fill is stretching out longer than you’d hoped, you can dig into your processes and make amends where necessary to bring the number down.
Cost Savings
Lengthy recruiting often results in higher costs. Advertising a job post on third-party boards and websites is not free. In fact, some job boards can cost as much as $500 per month to advertise a listing. Optimizing your time-to-fill means less money spent on advertising.
In the same vein, if your company holds in-person interviews for an open position, you may have to reimburse interviewees for travel expenses, including transportation, food and lodging. The sooner you can find a suitable candidate, the less money you’ll need to spend.
Gain an Edge Over the Competition
Having a long time-to-fill not only puts strain on your organization but impacts the candidates involved in the process. The longer it takes to make a hiring decision, the more likely candidates are to walk away from the opportunity. In fact, 62% of professionals start to lose interest in a job if they don’t hear back within two weeks (10 business days).
A faster hiring process produces better chances of maintaining interest from top talent and securing those candidates before your competitors.
Enhanced Decision-Making
Collecting time-to-fill data using an applicant tracking system enables organizations to analyze historical trends and make data-driven decisions about resource allocation, staffing levels and recruitment strategies.
Reduce Your Time-to-Fill With ApplicantStack
Applicant-tracking software like ApplicantStack automates integral portions of your talent acquisition process to help reduce time-to-fill, find the right candidates more quickly and even aid with employee onboarding for a more seamless experience.
Our software operates on a recruit, screen, select workflow with intuitive tools for:
Creating and publishing job postings online
Functional recruiting where you may be most likely to find the right candidate, like social media
Creating questionnaires and scoring applicants
And much more
The platforms help talent acquisition teams streamline and automate essential recruiting checkpoints, such as pre-screening, pre-employment assessments and candidate nurturing to boost engagement and reduce your time-to-hire.
Start a free trial today and discover how ApplicantStack can help you make better hiring decisions, quicker.
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