How can a company assess that its recruiting process is efficient or not? One of the ways in which you can do that is by utilizing a range of relevant recruiting metrics. When used accordingly, recruiting analytics can outline a range of essential specifications. More specifically, these could indicate whether your external recruiting efforts provide the results you want or the other way around.
On the flipside, these could indicate the presence of meritocracy and diversity problems. To that end, recruiting yield ratios are amongst the most valuable performance indicators. Usually, the yield percentage represents the number of candidates that are eventually hired from a larger total of applicants.
Calculating the Yield Ratio
The formula for calculating this metric is: number of hirable candidates resulting from stage n/total number of candidates who came in stage n.
Now that you’re acquainted with the formula, we’d like to focus our attention on the usefulness of this metric. Fundamentally, yield metrics indicate whether your approach to recruitment is efficient or not. For instance, as an external candidate source, your company might opt for the services of an agency. That agency sends out 200 individual resumes. Nevertheless, only 5 percent of them go beyond the screening cell phase.
Essentially, this is a low yield, which could signal the existence of several problems. For example, there might be an issue of communication. Perhaps you should pinpoint the individual specifications of the job. Or, another problem might be that the external agency you’re collaborating with isn’t right for your industry.
How do you determine that? What you ought to do is compare distinct recruitment ratios from various sources such as employee referrals, recruitment agencies, job boards, and the list may go on.
Calculate and Compare Different Approaches
It’s worth noting that yield ratios, as such, aren’t that useful. That is to say, you should compare the results against other ratios. This way, you’ll get a more realistic point of view to see where you’re standing. The goal of utilizing various HR metrics is to make the right conclusions – the conclusions that will allow you to make better decisions for your firm’s success. It’s no secret that a firm’s productivity is impending on the productivity level of the staff.
To that end, if the yield ratio decreases over the course of time, this could pinpoint that your screening process has become more effective – which, of course, is a good thing. At the same time, if the number of candidates decreases, as well, this doesn’t mean that the quality of the hire has decreased as well. It merely outlines that your screening techniques are much better.
On a final note, yield metrics are valuable tools, allowing you to determine the effectiveness of your recruitment strategies and sources. By exploring the meaning behind the results, you can aim at customizing your hiring strategy, in an attempt to make it more efficient. Evidently, there are many ways in which you can use these metrics. Note that each individual ratio provides info regarding your company – so, make sure you interpret them accordingly, for best results.