Yield ratios
Recruiting yield ratios are key metrics that measure how effectively your recruitment process moves candidates through different stages. They show the percentage of candidates who make it from one stage to the next, from the initial application to the final hire. Yield ratios help assess the efficiency of sourcing strategies and identify areas to improve the hiring process.
For example, if a company receives 135 applications for a role via an online job board and invites 15 candidates for an interview, the yield ratio at the screening stage is calculated as:
Yield ratio = 15 / 135 = 0.11 or 11%
This means 11% of applicants were qualified enough to get an interview.
It's important to calculate the yield ratio at each stage of the hiring journey, from application to screening, interview, and final hire. By doing this, you can identify which stages are working well and which may need improvement, helping you streamline the process and improve overall efficiency.
Why yield ratios matter:
- Improve efficiency in mass hiring: If a company regularly hires large numbers of employees, a high yield ratio can help reduce recruiting costs by streamlining the process.
- Evaluate sourcing effectiveness: Yield ratios help you assess which recruiting channels (like job boards, social media, or referrals) are bringing in qualified candidates. If a job board is generating thousands of resumes but only a small percentage pass screening, it might signal a problem with the job ad or sourcing strategy.
- Lower recruitment costs: A clear understanding of yield ratios can pinpoint inefficiencies, helping you fine-tune the recruitment process, reducing unnecessary costs, and improving your hiring speed.
- Spot potential biases: If a certain demographic consistently gets stuck at a particular stage, it could indicate bias in the process, prompting the company to make adjustments and ensure fairness.