The yield ratio is an indicator that shows the percentage of candidates who go forward from a given stage of the hiring process to another.
How to Calculate the Yield Ratio?
The yield ratio can be calculated with the following formula:
For example, a company received 50 applications for a given position. Only 10 candidates out of 50 were then contacted for a phone interview. The yield ratio of this stage is 20%: (50÷ 10)×100.
What Does a High Yield Ratio Indicate?
High yield ratios indicate that a recruitment process has attracted a high number of successful applicants.
Why Is the Yield Ratio Important?
The yield ratio is a valuable metric that allows HR professionals to improve their recruitment activities.
For example, a job ad generating 150 applications where only 1% of the applicants passed the screening process would result in low yield ratio. This could mean that the job offer did not attract qualified candidates, that the pool of candidates was weak, or that the job ad misrepresented the needs of the company.
FAQs
Yield ratios are metrics used in recruiting that measure what percentage of applicants move from one stage to another in the hiring process. They are used to measure the success of various recruiting methods and strategies.
What is the yield ratio? ›
The yield ratio is a metric that indicates the percentage of candidates who succeed in passing from one recruitment stage to the next. Its most common use is to determine how many candidates get hired from the total number of candidates, but you can use this metric at every stage of the hiring process.
What is a yield ratio quizlet? ›
Yield ratios show the number of applicants at one stage of the recruiting process who move to the next stage, so an organization can significantly reduce its recruiting costs by achieving favorable yield ratios.
How to find the yield ratio? ›
The yield ratio is a fairly straightforward calculation that can be done using the below formula: Number of candidates results from the stage/number of candidates that passed through the stage = Yield Ratio.
What is a yield formula? ›
Yield calculation and formula
The calculation for yield differs depending on the type of yield. The common formula is income (eg from dividends or interest payments) divided by investment value. This can then be multiplied by 100 to get a percentage figure.
What is the yield rate? ›
Yield rate is the ratio of the output or yield of a process to the input or raw materials used, typically expressed as a percentage. It measures the efficiency and effectiveness of a production process in converting inputs into usable or salable products.
How to calculate ratio? ›
Since ratios compare data between two numbers of the same kind, this means your formula would be A divided by B. For instance, if A equals 5 and B equals 10, then your ratio will be 5 divided by 10.
What is the current yield ratio? ›
What Is the Current Yield? Current yield is an investment's annual income (interest or dividends) divided by the current price of the security. This measure examines the current price of a bond, rather than looking at its face value.
Is the percent yield the ratio? ›
The percent yield is calculated using the ratio between the actual yield and the theoretical yield. To find the percent yield the actual yield is divided by the theoretical yield the resulting answer is multiplied by 100.
What is yield very short answer? ›
: to produce as return from an expenditure or investment : furnish as profit or interest. a bond that yields 12 percent. (2) : to produce as revenue : bring in.
The yield ratio is a useful way of measuring the success of various recruitment and investment strategies. In recruitment, it helps you to find the ratio of candidates who progress from one stage to another in the hiring process.
What is price to yield ratio? ›
The earnings yield is the inverse ratio to the price-to-earnings (P/E) ratio. The quick formula for Earnings Yield is E/P, earnings divided by price. The yield is a good ROI metric and can be used to measure a stocks rate of return.
What is an example of a yield ratio? ›
The yield ratio can be calculated with the following formula: For example, a company received 50 applications for a given position. Only 10 candidates out of 50 were then contacted for a phone interview. The yield ratio of this stage is 20%: (50 ÷ 10) × 100.
What is the formula for yield ratio in production? ›
Divide the number of good, error-free units produced by the total number of units produced. This gives you the proportion of good products you've created out of the total. Then, multiply the result by 100, which gives you the answer in percentage form.
What is the formula for interest yield ratio? ›
The formula for a company's TIE number is earnings before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt. The result is a number that shows how many times a company could cover its interest charges with its pretax earnings. TIE is also referred to as the interest coverage ratio.
What is yield ratio of energy? ›
The energy yield ratio is defined as the ratio of energy content in the ethanol and total fossil energy required to produce it. NREV and the energy yield ratio provide essential information to assess the biofuel's contribution to energy security, while NEV gives total input/out energy analysis including renewables.
What is stock yield ratio? ›
The Dividend Yield Ratio (DY) measures the return on investment in stocks and shares. It is calculated by dividing the dividend per share by the stock price. The dividend expressed in dollars is divided by the stock price expressed in dollars to arrive at the Dividend Yield Ratio.
What is yield cost ratio? ›
Yield on cost (YOC) is a measure of dividend yield calculated by dividing a stock's current dividend by the price initially paid for that stock. For example, if an investor purchased a stock five years ago for $20, and its current dividend is $1.50 per share, then the YOC for that stock would be 7.5%.
What does bond yield ratio mean? ›
The bond equity earnings yield ratio (BEER) is a way investors can use bond yields to estimate the direction of the stock market. The ratio is determined by dividing the yield of a government bond by the current earnings yield of a stock or stock benchmark.