HR Glossary >> TAT (Turnaround Time)
TAT (Turnaround Time)
TAT or Turnaround Time is the total time taken to complete a process from start to finish. It’s a vital metric used in industries like IT, customer service, and logistics to measure efficiency and track how quickly tasks or issues are resolved.
What is TAT in HR ?
TAT, or Turnaround Time, refers to the total time taken to complete a specific process, task, or request from the point it is initiated until it is fully completed. In HR, TAT is an important metric used to measure the efficiency and effectiveness of HR operations such as recruitment, payroll processing, employee onboarding, grievance handling, and performance reviews.
Importance of TAT in Human Resources
- Operational Efficiency: A shorter TAT ensures HR processes run smoothly and reduce bottlenecks.
- Employee Satisfaction: Employees expect timely responses, whether it’s resolving payroll issues, processing leaves, or handling grievances.
- Business Impact: Faster recruitment TAT means critical roles are filled quickly, minimizing productivity losses.
- Performance Measurement: Helps track the effectiveness of HR teams and service delivery.
- Benchmarking: Provides data for comparing internal processes with industry standards.
Common Areas Where TAT is Measured in HR
- Recruitment TAT
- Time taken from raising a job requisition to candidate joining.
- Includes sourcing, screening, interviews, offer release, and acceptance.
- Onboarding TAT
- Duration from candidate acceptance of an offer to completion of onboarding formalities.
- Payroll TAT
- Time taken to resolve payroll discrepancies or process salary changes.
- Grievance Redressal TAT
- Duration to address employee complaints, queries, or conflicts.
- Exit Process TAT
- Time taken to complete formalities like clearance, full & final settlement, and exit interviews.
- Learning & Development TAT
- Time required to design and deliver training once a skill gap is identified.
How TAT is Calculated
TAT = (Time of Completion) – (Time of Request Initiation)
Example: If an employee raises a leave request on Monday at 10 AM and HR approves it by Tuesday at 2 PM, the TAT is 28 hours.
Factors Affecting TAT in HR Processes
- Volume of requests or applications
- Complexity of processes (e.g., background checks in recruitment)
- Dependencies on other departments (finance, IT, operations)
- Technology and automation in use
- HR team’s bandwidth and efficiency
- Standard operating procedures (SOPs) and workflows
Best Practices to Improve TAT in HR
- Automation: Use HR tech platforms for faster recruitment, payroll, and onboarding.
- Clear SLAs (Service Level Agreements): Define turnaround expectations for different HR processes.
- Process Standardization: Implement uniform workflows to reduce delays.
- Training HR Teams: Ensure HR professionals are skilled in tools and time management.
- Prioritization: Handle urgent and business-critical tasks first.
- Continuous Monitoring: Use dashboards and reports to track and improve TAT.
TAT Benchmarks in HR (Indicative Examples)
- Recruitment TAT: 30–45 days depending on role complexity
- Offer Release TAT: 3–5 business days
- Payroll Query Resolution TAT: 24–48 hours
- Employee Grievance Resolution TAT: 7–10 working days
- Exit Settlement TAT: 30–45 days
(Note: Benchmarks vary by industry, company size, and region.)
Benefits of Tracking and Reducing TAT
- Improves HR’s credibility and trust within the organization
- Enhances employee and candidate experience
- Reduces costs associated with inefficiencies and delays
- Provides competitive advantage in talent acquisition
- Aligns HR with overall business agility and responsiveness
TAT in Recruitment: A Special Focus
Recruitment is one of the most critical areas where TAT directly impacts business performance. A shorter TAT means companies can secure top talent faster before competitors. Strategies to improve recruitment TAT include:
- Building a proactive talent pipeline
- Using applicant tracking systems (ATS)
- Automating resume screening with AI tools
- Standardizing interview scheduling and feedback loops
- Collaborating closely with hiring managers
Challenges in Managing TAT
- Unforeseen delays in candidate acceptance or notice periods
- Dependency on external vendors (e.g., background verification agencies)
- Lack of coordination between departments
- Manual, paper-heavy processes
- Resistance to adopting automation tools
TAT vs SLA in HR
- TAT (Turnaround Time): Actual time taken to complete a process.
- SLA (Service Level Agreement): The agreed-upon expected time for completion.
Example: SLA for payroll query resolution may be 24 hours, but actual TAT could be 36 hours, indicating a process delay.
Future of TAT in HR
- AI & Automation: Predicting and reducing TAT through AI-driven HR tools.
- Real-Time Dashboards: Allowing leaders to monitor TAT instantly.
- Predictive Analytics: Forecasting delays and addressing them proactively.
- Employee Self-Service Platforms: Reducing HR dependency and cutting down TAT for routine tasks.
Conclusion
Turnaround Time (TAT) is a critical metric for HR efficiency and employee satisfaction. By measuring, analyzing, and improving TAT across recruitment, onboarding, payroll, and other HR processes, organizations can enhance productivity, reduce costs, and deliver a superior employee experience. In today’s fast-paced business world, reducing TAT is not just an operational necessity but a strategic advantage.