What is yield ratio?

If you’ve ever wondered what is yield ratio?, it’s a recruitment metric that measures the percentage of candidates who move from one stage of the hiring process to the next. In simple terms, it shows how effective your sourcing and screening efforts are. For example, if 100 candidates apply and 20 are shortlisted, the yield ratio is 20%.

Why is yield ratio important?

Yield ratio matters because it helps recruiters and HR teams understand the efficiency of their hiring funnel. A low ratio might indicate issues with job descriptions, sourcing channels, or screening criteria. A high ratio suggests that your recruitment strategy is attracting the right candidates.

How to calculate yield ratio

The formula is straightforward:

Yield ratio = (number of candidates who advance ÷ number of candidates at
previous stage) × 100

For example:

• 200 applicants
• 50 shortlisted for interviews

Yield ratio = (50 ÷ 200) × 100 = 25%

This means 25% of applicants progressed to the next stage.

The types of yield ratios in recruitment

Yield ratios aren’t limited to one point in recruitment - they can be calculated at every stage to give a clear picture of efficiency. Here’s how they work:

Application to screening

This ratio shows how many applicants meet the basic requirements for the role. For example, if 500 people apply and 150 pass the initial CV check, the yield ratio is 30%. A low ratio here may indicate unclear job descriptions or ineffective sourcing channels.

Screening to interview

This measures how many candidates are suitable for interviews after screening. If 150 screened candidates lead to 50 interviews, the ratio is 33%. A low figure could mean your screening criteria are too broad or your sourcing isn’t attracting the right talent.

Interview to offer

This ratio reveals how many interviewed candidates receive job offers. For instance, if 50 interviews result in 10 offers, the ratio is 20%. A low ratio might suggest issues with candidate quality or unrealistic expectations during interviews.

Offer to acceptance

Finally, this ratio tracks how many offers are accepted. If 10 offers lead to 8 acceptances, the ratio is 80%. A low acceptance rate could point to problems with salary, benefits, or candidate experience.

Monitoring these ratios helps identify bottlenecks and improve decision-making. For example, if most candidates drop off between interview and offer, you may need to review your selection process or adjust expectations. If the biggest gap is at the application stage, refining job adverts or sourcing strategies could make a big difference.

What are the benefits of monitoring yield ratio?

Monitoring yield ratios provides several advantages:

Better resource allocation

Recruitment budgets and time are limited. By monitoring yield ratios, you can identify which sourcing channels deliver the highest-quality candidates. For example, if job boards have a low yield ratio but employee referrals perform better, you can shift resources to maximise results.

Improved job descriptions

A low yield ratio between application and screening stages often signals unclear or unrealistic job descriptions. Analysing this data helps refine requirements so they attract candidates who genuinely fit the role, reducing wasted effort and improving candidate experience.

Data-driven decisions

Yield ratios provide hard evidence of what’s working and what isn’t. Instead of relying on gut feeling, recruiters can adjust strategies based on actual performance. For instance, if the interview-to-offer ratio is low, it may indicate issues with screening criteria or interview processes.

Top five common mistakes when using yield ratio

Yield ratio is a valuable metric, but it can easily be misinterpreted or misused if not applied correctly. Here are the most frequent mistakes recruiters make:

1. Only looking at one stage instead of the full process

Focusing on a single ratio, such as application-to-screening, gives an incomplete picture. A high ratio at the start might look positive, but if interview-to-offer ratios are poor, the overall process is inefficient. Always analyse yield ratios across all stages to identify where candidates drop off.

2. Ignoring quality and focusing solely on quantity

A high yield ratio doesn’t always mean success. For example, if many candidates progress to interviews but few receive offers, quality is lacking. Combine yield ratio with qualitative measures like candidate fit and hiring manager feedback to ensure you’re attracting the right talent.

3. Failing to update ratios regularly as hiring needs change

Recruitment strategies evolve, and so should your metrics. If you’re hiring for different roles or markets, old ratios may no longer apply. Regular reviews help keep your data relevant and actionable.

4. Using yield ratio in isolation

Yield ratio should never be the only metric you track. Pair it with time-to-hire, cost-per-hire, and source effectiveness for a complete view of recruitment performance. This holistic approach prevents decisions based on incomplete data.

5. Not considering external factors

Market conditions, employer branding, and salary competitiveness can all impact yield ratios. Ignoring these factors can lead to unrealistic expectations and flawed conclusions.

By avoiding these mistakes, you’ll use yield ratio as a powerful tool for improving recruitment efficiency rather than a misleading statistic.

How to improve yield ratio (in six steps)

Why yield ratio matters for strategic hiring

Yield ratio isn’t just a number - it is a reflection of how well your recruitment strategy aligns with organisational goals. By tracking and improving this metric, you can reduce wasted effort, speed up hiring, and secure top talent faster.

Ready to optimise your recruitment pipeline?

At Airswift, we help businesses in STEM improve hiring efficiency with data-driven strategies. From sourcing top talent to streamlining processes, our global recruitment expertise ensures your yield ratios translate into successful hires.