Hiring Rate Calculator
Calculate your recruitment efficiency and selection ratio.
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Understanding Your Hiring Rate (Selection Ratio)
The Hiring Rate, also commonly referred to as the Selection Ratio, is a critical human resources metric that measures the efficiency of your recruitment funnel. It represents the percentage of applicants who are eventually hired for a specific role or within a specific timeframe.
The Hiring Rate Formula
To calculate the hiring rate manually, use the following formula:
Why This Metric Matters
- Recruitment Quality: A very low hiring rate might suggest that your job descriptions are too broad, attracting too many unqualified candidates.
- Source Effectiveness: By calculating the rate per sourcing channel (e.g., LinkedIn vs. Referrals), you can see where your highest quality candidates come from.
- Cost Management: If your rate is extremely low, you are spending significant resources screening candidates who aren't a fit.
Real-World Example
Imagine your company opens a position for a Senior Software Engineer. You receive 150 applications. After the screening, interviewing, and technical testing process, you extend offers to 3 candidates who all accept.
Calculation: (3 / 150) × 100 = 2%
This means your selection ratio for this position is 2%, indicating a highly competitive and selective hiring process.
How to Improve Your Hiring Rate
Improving this rate doesn't necessarily mean hiring more people; it often means attracting better candidates so you don't have to sift through as many applications. Consider:
- Refining job requirements to be more specific.
- Using "knock-out" questions in the application form.
- Enhancing your employer brand to attract passive candidates who are a better cultural fit.