What are Yield Ratios?
Yield ratios calculate the percentage of candidates progressing from one stage of the recruiting process to the next. It is often used to determine how many candidates were hired from a pool of applicants. However, its use can extend beyond that to include every stage of the employment process and recruitment source.
How do you compute the yield ratio?
The yield ratio formula is
Yield Ratio = the total number of candidates chosen from # stages divided by the number of applicants who passed.
The ATS system can assist you in gathering data that you can then utilise to locate the desired results.
What is the significance of yield ratios?
A few significant reasons why yield ratios are crucial for a recruiting firm are:
- They increase the efficiency of recruiting.
The yield ratio is significant for large corporations with a continual demand for new employees. Because numerous roles must be filled at once, the time and money spent due to recruiting defects can substantially impact the company's profit margin, necessitating a system that recognises the flaws in the process.
- They lower the cost of hiring.
Improving your recruiting process's efficiency usually leads to lower total hiring expenses. Using yield ratios might assist you in identifying process faults or candidate sources that do not produce quality candidates. This helps you to find the perfect individuals for each assignment faster and more affordably.
- They eliminate hiring bias.
Having a framework that explains the potentially ineffective elements of the recruiting process can also uncover various hiring issues. If numerous applicants from a particular demographic group pass one step of the recruitment process but only a tiny number pass the next, the organisation may be prompted to look into potential biases in recruiting.