Measuring time to fill is quite popular among recruiting organizations and can be an important factor in determining recruitment marketing ROI. Time to fill measures the time it takes to hire for a given position, starting with the opening of the requisition. It is a VERY broad metric for understanding the efficiency of your talent acquisition processes and strategies.
Do not confuse time to fill with time to hire. Time to hire generally works backwards from the hired employee and measures the time that elapses between when the hired employee was first identified as a candidate and their acceptance of an offer letter.
Time to Fill and Recruitment Marketing
So how does recruitment marketing impact fill time?
- Increased access to talent
- Talent is more responsive to opportunities
- Faster exposure of jobs to candidates
A foundation of recruitment marketing is centralizing your candidates into a proprietary talent pool, segmented, organized, and managed using a candidate relationship management (CRM) tool. This includes past applicants, talent network members, agency submitted candidates, candidates from resume databases, past event attendees – all your candidates that previously resided in different systems, files, and email boxes across your organization.
A CRM, combined with recruitment marketing strategies and processes, allows you to acquire, identify, and engage top talent prior to need.
Having a pre-qualified, growing talent pool means that you have a ready supply of potential hires for every job that opens up. With no time lag for advertising or broad searching and sourcing, you’ll be able to fill jobs faster. Calculating time to fill ROI looks like this:
Time to Fill ROI
[current time to fill in days] x [total number of hires] x [projected efficiency % increase] x [revenue per employee] ÷ [261 work days in a year]
With this projection, you are measuring increase in productivity gained by having employees hired and productive faster. As with most of these ROI projections, you’ll need to choose a percentage of increased efficiency as well as find out what your current time to fill is and your organization’s revenue per employee.
Revenue per employee is a bedrock productivity number for any organization. Your finance team will know this number.
Recent Brandon Hall Group research found that organizations with higher levels of recruitment marketing capability had 39% faster time to fill than those with lower levels of recruitment marketing capability, so that’s a good place to start.
Time to Fill Example
35 [current days to fill] x 50 [total hires] x 39% [increase in efficiency] x $200,000 [revenue per employee] ÷ 261 [work days in a year]= $522,968
Hard vs Soft Costs
It is important to understand that there are two kinds of value expressed in ROI calculations: Reduced hard costs and reduced soft costs.
Hard costs are the actual dollars removed from your expenses by implementing recruitment marketing strategies and technologies. Increased productivity represents the removal of a soft cost. In this case it's increasing the productivity of the organization by removing lost productivity associated with unfilled positions.
Soft costs like these can end up giving you huge numbers that tend to be given less weight by those scrutinizing your ROI, while hard cost savings can be given more weight. This is natural. Oftentimes you can discount the value of soft costs by 90% or more and still show compelling value within your overall ROI justification.
Job Distribution and Time to Fill
A big part of recruitment marketing revolves around attracting candidates to your jobs through the strategic automation of the job board distribution process. Talemetry's Job Broadcast module allows organizations to centralize and automate job posting based on performance, rather than having recruiters review and distribute each requisition one by one before posting.
Automating this process so that jobs get distributed to the best performing boards for each job family reduces the time it takes between opening a requisition and receiving resumes for the position.
With job ads automatically posting to the best performing job boards immediately as a requisition goes live, your recruiters will get faster access to talent. Rather than wait for the job to be approved, assigned and posted ad hoc, recruiters start getting candidates as soon as the position is assigned. This reduces the time to fill by a number of days per position.
To calculate ROI, you need to know the current lag between requisition approval and recruiter posting. Once you know this, you have the ability to calculate reduced time to fill associated with automated job distribution.
Time to Fill Example for Automated Job Distribution
3 [days lag time] x 250 [jobs posted] x $204,000 [revenue per employee] ÷ 261 [days per year] = $586,207
In this example, we have removed three days from job distribution process and expressed it across 300 hires in the form of increased productivity.
Recruitment marketing strategies and technologies provide compelling ROI in a number of different ways, including reducing time to fill. To learn more about how recruitment marketing strategies and technologies affect your recruiting ROI, check out Talemetry's free eBook: The Recruitment Marketing ROI Handbook.
- Use Job Distribution to Control Job Board Aggregators
- Measuring Cost per Hire for Recruitment Marketing ROI
- What Does Google for Jobs Mean for Your Career Site