The yield ratio is calculated by dividing the number of candidates resulting from a specific stage by the number of candidates that entered that stage. This metric helps understand the effectiveness of each stage in a recruitment or selection process.
Here's a more detailed breakdown:
Formula:
Yield Ratio = (Number of Candidates Resulting from Stage) / (Number of Candidates Entering Stage)Explanation:
- Number of Candidates Resulting from Stage: This is the number of candidates who successfully complete the stage and move on to the next.
- Number of Candidates Entering Stage: This is the number of candidates who began the current stage.
Example:
Let's say you have 100 candidates who applied (entered the screening stage). After screening resumes, 20 candidates are invited for a first interview (resulted from the screening stage).
The yield ratio for the screening stage is:
Yield Ratio (Screening to First Interview) = 20 / 100 = 0.2 or 20%This means that 20% of the candidates who entered the screening stage successfully moved on to the first interview.
Applications & Stages:
Yield ratios can be calculated for various stages in a process, such as:
- Application Submission to Screening
- Screening to First Interview
- First Interview to Second Interview
- Second Interview to Job Offer
- Job Offer to Acceptance
Why Calculate Yield Ratios?
- Identify Bottlenecks: High attrition rates (low yield ratios) at a specific stage may indicate problems with that stage.
- Improve Process Efficiency: By understanding where candidates are dropping off, you can optimize the process to improve conversion rates.
- Resource Allocation: Yield ratios can help you allocate resources effectively by focusing on stages that need improvement.
- Measure the effectiveness: Assessing the effectiveness of different sourcing channels or recruiting strategies.
