HR Glossary / Yield Ratio

The yield ratio is an indicator that shows the percentage of candidates who go forward from a given stage of the hiring process to another.

How to Calculate the Yield Ratio?

The yield ratio can be calculated with the following formula:

Number of candidates who successfully passed onto the next stage ÷ Number of candidates who were invited to the stage × 100

For example, a company received 50 applications for a given position. Only 10 candidates out of 50 were then contacted for a phone interview. The yield ratio of this stage is 20%: (50 ÷ 10) × 100.

What Does a High Yield Ratio Indicate?

High yield ratios indicate that a recruitment process has attracted a high number of successful applicants.

Why Is the Yield Ratio Important?

The yield ratio is a valuable metric that allows HR professionals to improve their recruitment activities.

For example, a job ad generating 150 applications where only 1 % of the applicants passed the screening process would result in low yield ratio. This could mean that the job offer did not attract qualified candidates, that the pool of candidates was weak, or that the job ad misrepresented the needs of the company.

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