Average Days in Market
HR Metric - Average Days In Market
What (Definition)
Tracking the average days of a vacancy will help to determine the company’s ability to fill the positions with the right talent. The average number of days in the market is about getting to know how many days it took for the open status job to be filled with a quality candidate. Entry-level vacancy gets filled quickly. On the other hand, senior-level or executive job roles may take time due to the selective hiring process.
Why (Benefits)
The recruitment process and the quality of the job description impact how long the vacancy remains in the market. A well-designed and marketed job posting will reach more clients and have the potential to fill the vacancy quickly.
Tracking the average number of days will improve efficiency in the hiring process. The company can be more responsive to the candidates; therefore, it gains a competitive advantage.
Maintaining the pending list data can give insights into the market condition. Unfilled vacancies can indicate problems with the job role or compensation. By identifying the problem, the company can take measures to rectify it.
Prolonged vacancies indicate the shortage of labor in the market. This will require the company to adjust the hiring process or offer training and development programs to the existing employees.
Recording the average days of job vacancies will help the company understand the workforce market, and whether the job openings will get filled quickly or slowly.
The pandemic has caused ups and downs in the job market. One of the effects is that it takes longer to fill the job vacancy. Considering how many vacancies were advertised for the month and how many of them are still in open status will help us understand the average number of days the vacancy has been on the job market.
How (Calculation?)
Consider the date the vacancy was opened for the market and the date the job posting was closed. To find the average duration, add the total number of days of all the active job vacancies and divide it by the total number of job vacancies posted by the company.
Job Table with Open Positions and Days in Market
Total days the jobs were open = 79+71+61+15 = 226
Remember, this is calculated only for th positions that are open.
Say, the Total number of Open positions = 4
Average days the jobs were open = 226/4 = 56.5 days
We can conclude that this company takes an average of about 57 days to fill its vacant position from the day it published the vacancy job posting. The average day can change from time to time, depending on many other factors. Some factors can be influenced by the company, and some are beyond the company’s control. The business should take measures to keep the number of days minimal to maintain efficiency in the hiring process.
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Now it’s your turn.
Does your business calculate the average number of days the open job has been in the market? Please share your thoughts below. I look forward to learning from you.
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