Hiring Insights Blog
The war for top talent is tough, and every company is hiring to win. The quality of a candidate’s experience during the recruiting process is crucial and can impact whether or not the applicant accepts a job offer. Along with resulting in compliance risks, lack of efficiency during the last stage of the recruiting process, the offer letter, can increase a company’s speed to hire and can result in candidates withdrawing from the application process, or accepting an offer from a competitor.
How to Calculate Speed to Hire
Speed to hire measures the time it takes for a company’s best candidate to transition from an applicant to a new hire. Essentially, speed to hire tracks how quickly a company spots its best candidate and moves them along the job pipeline, leading them to accept the final job offer. To calculate a hiring process’ speed to hire, subtract the day that an applicant enters the pipeline from the day the candidate accepts the job offer. Determining your company’s speed to hire can help improve your hiring process, ensuring that applicants have a great candidate experience while your company acquires top talent.
The Offer Letter’s Role in Speed to Hire
Lacking efficiency during the offer letter process makes recruiting much more complex, difficult and time-consuming. After the verbal offer is made, a manual offer letter process usually begins with outdated templates, and relies on printers and scanners to officiate offers. These methods typically result in errors and elongate the recruiting process altogether.
After all the work you’ve put into sourcing and building a positive relationship with a candidate, you don’t want to lose them at the offer stage. According to MRINetwork, the most popular reason for offer rejections is that another offer was accepted (47 percent of the time), while 11 percent rejected the offer due to a lengthy recruiting process. Offer letters that are not distributed fast enough extend the length of the recruiting process, making it less likely for candidates to transition into new hires.
Losing candidates in the offer stage means it takes longer to fill roles and unfilled positions ultimately hinder an organization’s ability to hit business goals. Compared to 2010, it now takes 62 percent longer — five additional weeks — to fill the average vacancy. This slow down exposes organizations to the risk of losing talent to competitors and costs an average of $11.25M per 1,000 vacancies through lost productivity and additional recruiting work.
The spread of negative reviews about a company’s lengthy recruiting process could travel quickly and deter others from applying to any job positions. In fact, 35 percent of candidates will share their negative experiences publicly online. Overall, the offer letter process is an essential part of a company’s candidate experience and could negatively impact its ability to hire the best applicants if not speedy.
How to Streamline Your Offer Letter Process
So, how do you speed up your hiring process so that you acquire the best candidates? The answer is simple: a streamlined and automated offer letter process.
With consistent and scalable processes through repeatable templates and approval procedures, offer letter processes reduce your recruiting team’s time spent on administrative tasks. You can say goodbye to manually updating templates, which will increase collaboration across all of your offer letter stakeholders.
Even if you manage your offer letters online, a lack of integration with your recruitment platform could still make this process very manual. To streamline offer letter processes, it’s crucial to eliminate using multiple tools and workarounds.
Utilizing an offer letter process improves the hiring process for both candidates and recruiters, allowing companies to increase their speed to hire while hiring best-fit talent quickly.
Learn more about what to include in your offer letters and how they impact compliance.