How to Calculate Offer Acceptance Rate

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Offer Acceptance Rate Calculator
0.00% Offer Acceptance Rate
Total Offers Extended: 0
Offers Accepted: 0
Offers Declined: 0
Rejection Rate: 0.00%

How to Calculate Offer Acceptance Rate

The Offer Acceptance Rate (OAR) is a crucial Key Performance Indicator (KPI) for Human Resources and Talent Acquisition teams. It measures the percentage of candidates who accept a job offer after it has been extended by the organization. A high acceptance rate generally indicates a competitive compensation strategy, a strong employer brand, and an effective interview process.

The Formula

Calculating your offer acceptance rate is a straightforward mathematical process involving two primary metrics: the total number of offers extended and the number of offers accepted by candidates.

(Total Offers Accepted ÷ Total Offers Extended) × 100 = Offer Acceptance Rate %

Step-by-Step Calculation Guide

  1. Determine the Time Period: Select the timeframe you want to analyze (e.g., Monthly, Quarterly, or Annually).
  2. Count Offers Extended: Tally the total number of formal job offers sent to candidates during this period.
  3. Count Offers Accepted: Tally the number of those specific offers that resulted in a signed acceptance.
  4. Divide and Multiply: Divide the accepted count by the extended count, then multiply by 100 to get the percentage.

Example Calculation

Imagine a company is analyzing its recruiting performance for Q1. During this period:

  • The recruiting team extended formal offers to 40 different candidates.
  • Out of those, 34 candidates signed and accepted the offer.
  • 6 candidates declined the offer.

Calculation: (34 ÷ 40) = 0.85

Result: 0.85 × 100 = 85% Offer Acceptance Rate.

What is a Good Acceptance Rate?

While benchmarks vary by industry and economic conditions, a general rule of thumb for internal recruiting teams is:

  • 90% or higher: Excellent. Your offer process is highly effective.
  • 80% – 90%: Good, but there is room for optimization.
  • Below 80%: Indicates potential issues with compensation, company reputation, or the speed of the hiring process.

Why Candidates Decline Offers

If your calculation shows a low rate, consider investigating these common factors:

  • Compensation: Salary or benefits are below market value.
  • Competing Offers: Candidates are receiving better offers from competitors.
  • Speed: The hiring process took too long, and the candidate moved on.
  • Culture Fit: The interview process revealed red flags about the company culture.
function calculateOfferAcceptanceRate() { // 1. Get DOM elements var extendedInput = document.getElementById("totalOffersExtended"); var acceptedInput = document.getElementById("totalOffersAccepted"); var resultDiv = document.getElementById("oarResult"); var errorDiv = document.getElementById("oarError"); // 2. Parse values var extended = parseInt(extendedInput.value); var accepted = parseInt(acceptedInput.value); // 3. Reset error and result visibility errorDiv.style.display = "none"; resultDiv.style.display = "none"; // 4. Validation Logic if (isNaN(extended) || isNaN(accepted)) { errorDiv.innerText = "Please enter valid numbers for both fields."; errorDiv.style.display = "block"; return; } if (extended <= 0) { errorDiv.innerText = "Total offers extended must be greater than zero."; errorDiv.style.display = "block"; return; } if (accepted extended) { errorDiv.innerText = "Accepted offers cannot be higher than total offers extended."; errorDiv.style.display = "block"; return; } // 5. Calculation Logic var rate = (accepted / extended) * 100; var declined = extended – accepted; var rejectionRate = (declined / extended) * 100; // 6. Update Output Elements document.getElementById("displayRate").innerText = rate.toFixed(2) + "%"; document.getElementById("resExtended").innerText = extended; document.getElementById("resAccepted").innerText = accepted; document.getElementById("resDeclined").innerText = declined; document.getElementById("resRejectionRate").innerText = rejectionRate.toFixed(2) + "%"; // 7. Show Result resultDiv.style.display = "block"; }

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