What (Definition)
Applicants must successfully pass through several stages of the hiring process to receive their offer letters. It is vital for organizations to calculate and measure specific metrics to view insights into the recruitment process. The HR department often calculates the percentage of offer acceptance, one of the recruiting metrics to see the success of several stages of the hiring. It is the proportion of offers accepted out of all offers sent. The value of this metric can vary from one organization to another as well as different departments of an individual business as several factors affect it.
Why (Benefits)
This metric can help organizations analyze the success of a particular recruitment period.
- Calculating this metric will show the rate of offers accepted.
- If an organization has a high number of job openings, a higher percentage of offers accepted means the hiring process is effective.
- A high rate of acceptance could mean that the company is popular among the audience and there is competition between job seekers to get a role.
- This would help employers allocate an efficient budget for the upcoming hiring.
- A low rate of acceptance could mean candidates got a better offer or demand for talented applicants in the industry.
- Therefore the HR department can come up with different strategies such as effective training, better screening, high wages, etc.
How (Calculation?)
Calculating the percentage of offers accepted is very simple and straightforward.
- Count the number of offers accepted (hired) by candidates.
- Count the total number of offers sent out to applicants that is, who successfully passed the interview stage and reached the Offer stage.
- Make sure that the data you use are from the same hiring period.
Recruiting data from an organization is provided below.
The count of candidates who reached the offer stage is 6.
The count of candidates Hired is 4.
The general formula to calculate the rate of offers accepted:
Offer Acceptance % = (Number of Applicants Hired/Total Number applicants reaching Offer Stage) * 100
Therefore,
Offer Acceptance % = (4/6) * 100 = 66.7%
- The value you obtain must be equal to or less than 100.
- If it is above 100, there must be an error in the calculation or there is a overflow in the offers sent.
- Therefore the organization should make sure the number of offers sent is equal to the number of vacancies available.