When your company is left with an open position it is basically understaffed – this also means that your company probably has some of its operations disrupted or canceled, which in turn means that you can lose money just because of a vacant job position.
This is where the Average Time to Fill a Job Vacancy metric comes in, helping you determine how efficient your Human Resources Department is at hiring new people and filling job openings.
The Basics of Average Time to Fill a Job Vacancy
Usually referred to as Time to Fill, this metric shows you how many days it takes for your company to fill in a job opening – from the moment the job advertisement has been posted until the moment the position has been successfully filled in.
Keep in mind that Time to Fill and Time to Hire do not mean the same thing. Time to Fill refers to the time that passes until your Human Resources or Management team has contacted the potential employee.
On the other hand, Time to Fill refers to the period between the company’s first contact with a candidate and their hire. The difference may seem unimportant to you, but these two metrics give you valuable insight into how efficient two different processes are.
One measures the average time it takes for your company to find someone that can fill your job opening while the other one measures how fast your Human Resources team is as getting that employee in the office, working, and with a signed contract.
The Formula of the Average Time to Fill a Job Vacancy
When it comes to Average Time to Fill, it can be calculated in two ways, depending on whether you want to find the average time to fill for a certain position or the average time to fill on company level.
If you want to find the average time to fill for a certain position, all you have to do is calculate the average of the number of days when the position is open – namely, from the initial job listing to the initial hire.
In case you want to find the average time to fill for your entire company, then you have to track job openings for a certain period of time and then divide the overall number of open days by the total number of job openings in the same time period.
Why is the Average Time to Fill a Job Vacancy Important?
Well, first of all, if it takes a long time for your company to fill in a position, this means that the budget used for cost per hire will increase – as the cost per hire will get higher as well.
Moreover, as we already mentioned, while the recruitment process is on for a certain job opening, your company will be understaffed, and certain operations will be slowed down and even canceled until you manage to find someone to fill in that job.
Naturally, if you measure the Average Time to Fill a Job Vacancy, you will be given precious insight in terms of the effectiveness of the recruitment and hiring processes – this will help you find and fix their weak points and, therefore, reduce the time and cost it takes for your company to fill in a job opening.