What Is Candidates per Hire? Meaning and Strategies

Candidate per hire is a recruitment metric that represents the average number of candidates who are considered for a position before a successful hire is made. Basically, it monitors all the candidates in the recruitment funnel, versus all the positions that are successfully filled. A lower candidates per hire ratio may show that the company’s recruitment process is targeted and effective, and a higher ratio might be a sign that you should improve candidate sourcing and selection methods.

This particular metric is closely linked with the ‘candidate pipeline definition’, which shows the quality and number of candidates at various stages of the recruitment process. It is a depiction of the movement of candidates from the initial awareness to the hiring process, and it shows the ability of an organization to maintain a stream of talent for filling open positions.

The Importance of ‘Candidates per Hire’ in the Hiring Process:

As an organization knows and measures the candidates per hire metric, it can derive great benefits in its recruitment strategy. Here are some key reasons why this metric holds importance in the hiring process:

1. Recruitment Efficiency: A candidates-per-hire metric can reveal bottlenecks in the recruitment process. The fact that a large number of candidates are hired for the same job might mean that the process of screening is not targeted enough or that the job advertisements are not reaching the right audience.
2. Cost-Effectiveness: A lesser ratio usually implies a cheaper recruitment process since fewer resources are required to screen applicants and positions are filled sooner hence the cost per hire is reduced.
3. Quality of Hire: The ultimate goal of the ‘candidates per hire’ process that is streamlined is to make the matching more accurate, which might result in a better quality of hire.
4. Enhanced Candidate Experience: Through a more efficient process, candidates must spend fewer days in the recruitment pipeline, thus enhancing their candidate experience and satisfaction, which is a good testimony for the employer brand.
5. Data-Driven Decision Making: Through the analysis of the ‘candidates per hire’ number together with the other data, companies can make the right decisions on what areas to invest in their recruitment strategies.

    

Strategies to Optimize ‘Candidates per Hire:

To optimize the number of candidates per hire, organizations may consider the following strategies:

1. Improve Job Advertisements: Ensure job ads are clear, concise, and targeted towards the ideal candidate. Use the right channels to reach the relevant audience effectively.
2. Leverage Employee Referrals: A strong employee referral program can help bring in candidates who are more likely to fit the company culture and role requirements, thus reducing the candidates per hire ratio.
3. Strengthen Employer Branding: A strong employer brand can attract more qualified candidates directly to the company, increasing the chances of a hire with fewer candidates considered.
4. Utilize Recruitment Technology: Implement ATS (Applicant Tracking Systems) and CRM (Candidate Relationship Management) tools to automate screening and keep track of candidates efficiently through the pipeline.
5. Focus on Passive Candidates: Engaging with passive candidates, who are not actively seeking a job but are open to opportunities, can often lead to higher quality hires and a lower candidates per hire ratio.
6. Continuous Analysis and Feedback: Regularly review the candidate per hire metric and obtain feedback from new hires to understand the effectiveness of the recruitment process and areas for improvement.

    

Conclusion

The ‘candidates per hire’ metric is a vital indicator of recruitment process effectiveness. It helps organizations understand their success in converting applicants into employees and points to the efficiency of their talent acquisition practices. Keeping track of this number, and applying strategies to optimize it, can transform the way companies hire candidates, resulting in saving time, reducing costs, and attracting high-quality talent.