What is Yield Ratio?

Yield ratio refers to one of the key performance indicators (KPI) in human resources that shows what percentage of candidates from a specific source were invited for an interview.

Yield ratio, also known as recruitment yield ratio, is a metric used in human resources and recruitment to measure the effectiveness of various stages of the recruitment process. It is expressed as a ratio or percentage and provides insights into the efficiency of converting candidates from one stage of the recruitment process to the next.

The yield ratio is calculated by dividing the number of candidates who successfully pass a particular stage of the recruitment process by the number of candidates who entered that stage. The stages can vary depending on the organization and the specific recruitment process, but commonly include steps such as applications received, candidates interviewed, assessments conducted, and offers extended.

Here's the formula to calculate the yield ratio:

Yield Ratio = (Number of Candidates at a Stage / Number of Candidates at the Previous Stage) x 100

For example, let's say a company receives 100 applications, interviews 20 candidates, and extends job offers to 5 candidates. The yield ratio for each stage would be as follows:

Yield Ratio for Interviews = (20 / 100) x 100 = 20% Yield Ratio for Offers = (5 / 20) x 100 = 25%

The yield ratio helps recruiters and HR professionals assess the efficiency of each stage in the recruitment process. It provides valuable insights into the quality of candidates progressing through the process and identifies potential bottlenecks or areas for improvement.

A low yield ratio at a particular stage may indicate issues such as a high drop-off rate or a lack of qualified candidates. It may prompt a review of the screening criteria, interview techniques, or the overall attractiveness of the position. By analyzing the yield ratio at each stage, recruiters can optimize the recruitment process, enhance candidate experience, and increase the likelihood of successfully hiring qualified candidates.

It's important to note that yield ratio should be used in conjunction with other recruitment metrics and indicators to gain a comprehensive understanding of the effectiveness of the recruitment process.