The Recruiting yield Pyramid

by Sree Rama Rao on October 18, 2007

Some employers use a recruiting yield pyramid to calculate the number of applicants they must generate to hire the required number of new employees. The company knows it needs 50 new entry-level accountants next year. From experience, the firm also knows the ratio of offers made to actual new hires is 2 to 1; about half the people to whom it makes offers accept them. Similarly, the firm knows that the ratio of candidates interviewed to offers made is 3 to 2, while the ratio of candidates invited for interviews to candidates actually interviewed is about 4 to 3. Finally, the firm knows that of six leads that come in from all its recruiting efforts, only one applicant typically gets an interview – a 6-to-1 ratio. Given these ratios, the firm knows it must generate 1,200 leads to be able to invite 200 viable candidates to its offices for interview. The firm will then get to interview about 150 of those invited, and from these it will make 100 offers. Of those 100 offers, about 50 will accept.

Recruiting may bring to mind employment agencies and classified ads, but current employees are often the best source of candidates.

Filling open positions with inside candidates has many benefits. First, there’s really no substitute for knowing a candidate’s strengths and weakness. It is often therefore safer to promote employees from within, since you’re likely to have a more accurate view of the person’s skills. Inside candidates may also be more committed to the company. Morale may rise if employees see promotions as rewards for loyalty and competence. Inside candidates may also require less orientation and training than outsiders.

However, hiring from within can also backfire. Employees who apply for jobs and don’t get them may become discontented; telling unsuccessful applicants why they were rejected and what remedial actions they might take to be more successful in the future is crucial. Many employers require managers to post job openings and interview all inside candidates. Yet the manager often knows ahead of time exactly whom he or she wants to hire. Requiring the person to interview a stream of unsuspecting inside candidates can be a waste of time for all concerned. Inbreeding is another potential drawback. When all managers come up through the ranks, they may have a tendency to maintain the status quo, when a new direction is what’s required.

To be effective, promotion from within requires using job posting, personnel records, and skills banks. Job posting means publicizing the open job to employees (often by literally posting it on bulletin boards or intranets) and listing the job’s attributes, like qualification, supervisor, work schedule, and pay rate.

Qualification personnel inventory tools like those described earlier (such as computerized skills banks) are also important. An examination of personnel records may reveal employees who are working in jobs below their educational or skill levels. It may also reveal persons who have potential for further training or who already have the right background for the open job. Computerized records systems can help ensure that you consider qualified inside candidates for the opening.

Rehiring former employees has its pros and cons. On the plus side, former employees are known quantities (more or less), and are already familiar with the company’s culture, style and ways of doing things. On the other hand, employees who were let go may return with less-than positive attitudes. And hiring former employees who left fore greener pastures back into better positions may signal current employees that the best way to get ahead is to leave the firm.

In any event, there are several ways to reduce the chance of adverse reactions. For example, after rehired employees have been back on the job for a certain period, credit them with the years of services they had accumulated before they left. In addition, inquire (before rehiring them) about what they did during the layoff and how they feel about returning to the firm: “You don’t want someone coming back who feels they’ve been mistreated,” said one manager.





  • chitra

    hi

    rehiring the old is some time is benefit for company because the some time company recurit him by increasinr their salary in very little not reqiure to train them they have ideas about company but some some times demotivas the other employee’s

  • palanivelkumar

    Hi My friend

    Really a very good pyramid for recruiting and i liked it.I would like to add on a few like why not company go for external recruitment wherein people get new bloods with lot of creativity and in this era people stretch a lot and it will not be that hard to train them employees if the recruitment process follows a correct stream of procedure and if there is a correct job match.Though each of the recruitment has its pros and corns this is also a best way for recruitment in the yield pyramid ( the ratios that u have are really good )

  • Sanket

    Recruitment ratio definitely looks on higher side. I don’t think you need to get alomost 1000+ candidates to close 50 positions in current hot market. Yes if you pay well & company culture is good candidates would surely come to you & even attrition rate would be on lower side.

blog comments powered by Disqus

Previous post:

Next post: