Yield ratio | Meaning and Definition

What is the yield ratio?

The yield ratio is a metric used in recruiting that measures what percentage of applicants move forward in the recruiting process. For example, if a company has 100 applicants and 50 of them move on to the next stage of the recruiting process, its yield ratio would be 50%. 

The yield ratio is often used to compare different companies or different recruiting methods. For example, if Company A has a yield ratio of 30% and Company B has a yield ratio of 40%, that means that more applicants are moving forward in the recruitment process at Company B. This could be because Company B’s applicant screening methods are more effective or because they have more resources to devote to the recruitment process. 

Benefits of measuring yield ratio:

•   By understanding how many candidates are offered a job compared to the number of candidates who accept, employers can better assess their recruiting efforts and identify areas for improvement.
•   Measuring the yield ratio can help employers save time and money by allowing them to focus on candidates who are more likely to be hired.
•   Understanding the yield ratio can help employers determine whether they need to increase or decrease their salary offers to attract top talent.
•   A higher yield ratio indicates that a company is doing something right in its recruitment process. It suggests that the company is attractive to potential candidates, has accurately described the job roles and requirements, and is reaching out to enough potential candidates.