Recruitment Yield Ratio: A Human Resources Key Performance Indicator

Overview

Recruitment Yield Ratio is a critical Key Performance Indicator (KPI) in the Human Resources (HR) field. This KPI measures the efficiency and effectiveness of a company's recruitment process. It is a ratio of the number of successful hires to the total number of applicants who entered the recruitment process.

In essence, the Recruitment Yield Ratio provides an overview of the effectiveness of your recruitment strategy and process. A high yield ratio indicates a successful and efficient recruitment process, where a large proportion of applicants are deemed suitable for hiring.

Understanding this KPI helps organizations streamline their recruitment process, identify bottlenecks, and make informed decisions to improve recruitment outcomes. It can also help in benchmarking against industry standards, improving overall HR performance.

Formula

Calculating the Recruitment Yield Ratio involves dividing the number of successful hires by the number of applicants who entered the recruitment process.

Here is the formula for Recruitment Yield Ratio:

Recruitment Yield Ratio = Number of Successful Hires / Number of Applicants Who Entered the Process

In this formula:

• Number of Successful Hires represents the number of applicants that are hired at the end of the recruitment process.
• Number of Applicants Who Entered the Process includes all individuals who submitted their application for the job openings.

Please remember, this KPI should be used in conjunction with other HR metrics for a holistic view of the recruitment process and HR performance. Also, it is crucial to note that quality should not be compromised for quantity while recruiting.