What is a Yield Ratio?
Yield ratio is a metric used in recruitment to measure the effectiveness of a company’s hiring process. It is calculated by dividing the number of applicants who successfully complete each stage of the recruitment process by the number of applicants who applied at the beginning of that stage.
For example, if a company receives 500 applications for a job, and 250 of those applicants make it to the interview stage, the yield ratio for the interview stage would be 50% (250/500).
The yield ratio is an important tool for recruiters and HR professionals to evaluate the efficiency of their recruitment process. By measuring the yield ratio at each stage of the process, they can identify areas where they may be losing candidates and make adjustments to improve the overall yield ratio.
A low Yield Ratio at a specific stage of the recruitment process may indicate that the job description is not attracting the right candidates, the application process is too complex or time-consuming, or that there are communication gaps between the recruiters and candidates. Recruiters can use this information to change the recruitment process and improve the yield ratio.
Additionally, the Yield Ratio can be used to compare the efficiency of different recruitment channels or sources. For example, a company may find that job boards have a higher yield ratio than social media ads, indicating that they should invest more in job boards to reach a larger pool of qualified candidates.
Overall, Yield Ratio is a useful metric for recruiters and HR professionals to evaluate and optimize their recruitment process, leading to more efficient and effective hiring decisions.