Yield Ratio

Human Resource Terminologies and Definitions

What Is a Yield Ratio?

A Yield Ratio is a recruitment metric that shows the percentage of candidates who successfully move from one stage of the hiring process to the next. It tells you how many candidates โ€œmake the cutโ€ at each phaseโ€”whether thatโ€™s from application to interview, interview to final assessment, or final interview to offer acceptance.

The formula for calculating the Yield Ratio is simple:

Yield Ratio = (Number of candidates who move to the next stage รท Number of candidates at the previous stage) ร— 100

For example, if 200 people apply for a job, and 40 are selected for interviews, the yield ratio from application to interview would be:

(40 รท 200) ร— 100 = 20%

This means that only 20% of applicants progressed to the interview stage.

Why Yield Ratios Matter in HR

These are more than just numbersโ€”they reveal how effective your recruitment process is at filtering and selecting qualified candidates. Hereโ€™s why theyโ€™re so valuable:

1. Measure Recruitment Efficiency: Yield ratios help HR teams identify stages in the hiring process that may be too strict, too lenient, or simply ineffective. A very low yield ratio could mean your criteria are too narrow or that your job descriptions arenโ€™t attracting the right candidates.

2. Improve Decision-Making: By analysing yield ratios at different stages, HR managers can make more informed decisions about where to focus their time and resources. For instance, if many candidates drop off between the interview and assessment stage, you might need to revisit your evaluation process or interview experience.

3. Optimise Sourcing Channels: Yield ratios can also be calculated per sourceโ€”such as job boards, social media, employee referrals, or career fairs. Comparing these can help you determine which sourcing channels deliver the highest-quality candidates.

4. Set Benchmarks and Goals: Once you have baseline data, yield ratios allow you to set benchmarks and improve over time. You can track whether changes in your recruitment strategy lead to better outcomes.

Types of Yield Ratios

Recruiters can track multiple types of yield ratios throughout the hiring funnel. Common examples include:

  1. Application-to-Interview – Measures how many applicants are shortlisted for interviews.
  2. Interview-to-Offer – Tracks how many interviewed candidates receive a job offer.
  3. Offer-to-Acceptance – Measures how many candidates accept your job offers.
  4. Sourcing – Compares the performance of different recruitment channels.

Improving Your Yield Ratios

If your yield ratios arenโ€™t where youโ€™d like them to be, donโ€™t panic. Here are a few ways to improve them:

  1. Refine job descriptions to better attract qualified candidates.
  2. Train hiring managers to conduct more effective interviews.
  3. Use pre-screening tools to filter candidates earlier in the process.
  4. Improve candidate experience to reduce drop-offs between stages.
  5. Align hiring criteria with actual job performance expectations.

Understanding and tracking Yield Ratios gives HR teams valuable insight into the recruitment process. It helps you see where strong candidates are getting filtered outโ€”or where you might be spending too much time on unqualified applicants. By measuring yield ratios at each step, you can fine-tune your hiring strategy, reduce time-to-hire, and ultimately build a stronger, more qualified workforce.


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