Yield Ratio

Yield ratio, otherwise known as selection ratio, is the recruitment metric that measures the competence of the hiring process by comparing the number of the applicants who make it to the next stage of the hiring process to the total number of the applicants. The success rate is obtained by dividing the number of successful candidates by the total number of applicants and expressing the result as a percentage. A high yield ratio is evidence of a selective hiring process while a low yield ratio indicates the presence of inefficiencies or barriers in attracting and retaining qualified candidates.

Example of Yield Ratio

A human resources department monitors the productivity ratio of its recruitment efforts to assess the efficiency of its sourcing and screening tactics. For a recent job opening at the department, we got 200 CVs from potential employees. On the basis of resumes and initial screening, 50 candidates were interviewed. From the initial pool of 50 candidates, only 10 were selected and actually started working. To determine the yield ratio, the department will divide the number of hires made (10) by the total number of applicants (200), which will be 5%. This implies that out of 100 applicants, only 5 were ultimately hired as employees. Through a yield ratio analysis, the HR team can pinpoint problem areas in the recruitment process that need improvement, such as amelioration of candidate attraction strategies, simplification of screening criteria, or fine-tuning interview methods that will contribute to more productive and accurate hiring efforts.