Advice from experts · 5/3/2023 · 1 min read
Understanding Recruitment Conversion Ratios and their Importance
We hear a lot about Data Driven recruitment strategies. RocketPower believes that understanding data in recruitment starts with understanding recruitment conversion ratios.
Recruiting conversion ratios are a set of metrics used to track and measure the success of a recruiting process. They indicate the percentage of candidates that move from one stage of the recruitment process to the next, and ultimately, the percentage of candidates that are hired.
Tracking this data requires a process and a system of tracking. For most TA organizations this is driven from the ATS, but for the team here at RocketPower we feel the tracking really needs to occur from the top of the Talent funnel as well. Having this data at hand is indicative of your own Talent Acquisition teams stage of Talent Maturity.
In general, we see tracking ratios important for several reasons:
Identifying areas for improvement: By monitoring recruiting ratios, recruiters can identify areas of the recruitment process that need improvement. For example, if the applicant to interview conversion ratio is low, it may indicate that the job posting needs to be more clear or that the sourcing strategy needs to be revised.
Measuring success: Recruiting ratios provide a way to measure the success of the recruitment process. If the ratios are improving over time, it is a sign that the recruitment process is becoming more effective.
Making data-driven decisions: Data from recruiting ratios can be used to make data-driven decisions. For example, if the offer to hire conversion ratio is low, recruiters can analyze the data to identify reasons for the low ratio and make changes to the recruitment process accordingly.
Ensuring a positive candidate experience: A positive candidate experience is important for attracting top talent. By monitoring recruiting ratios, recruiters can identify areas of the process that may be negatively impacting the candidate experience and make changes to improve it.
Overall, tracking recruiting ratios provides recruiters with valuable insights into the effectiveness of their recruitment process and enables them to make data-driven decisions to improve their success in hiring top talent. In our next Blog we will speak to each ratio and describe what we can learn from tracking each.
Why Measuring the Entire Recruitment Pipeline Matters
It is important to measure the recruitment funnel from outreach through to hire because it provides valuable insights into the effectiveness of the recruitment process and helps identify areas where improvements can be made.
Here at RocketPower we have built our own app to help our teams provide clients with Top of Funnel insights. Our app seamlessly integrates into any ATS, helps us measure the effectiveness and productivity of our teams and provides our clients with the data they need to become more effective decision-makers.
By measuring the recruitment funnel, employers can track the number of candidates at each stage of the process, including how many applicants were sourced, how many moved on to the interview stage, and how many ultimately received job offers. This data can help identify bottlenecks in the process and help employers make data-driven decisions to optimize their recruitment efforts.
Furthermore, tracking the recruitment funnel can help employers determine the cost-effectiveness of their recruitment efforts. By analyzing the data, employers can calculate the cost per hire, which includes the cost of job postings, recruiting software, and employee time spent on recruiting activities. This information can help employers allocate their resources more effectively and make informed decisions about future recruitment strategies.
Overall, measuring the recruitment funnel is important because it provides a clear picture of the recruitment process and helps employers identify areas for improvement, optimize their recruitment efforts, and ultimately make better hiring decisions.