Submittal Efficiency
Submittal Efficiency
Submittal Efficiency
candidates fit against the requisition profile. It is defined as the number of candidates interviewed
divided by the total number of candidates submitted. You would expect this number to be high.
However, as in Thermodynamics, it can be TOO high. If it is 100%, the recruiter is not pushing
the edges of the requisition specifications, which means you are probably missing good
candidates.However, if your submittal efficiency is too low, it indicates the hiring managers are
spending too much time reviewing resumes. This could be because the recruiter may be doing a
poor job, or perhaps the requisition has been poorly specified. As a whole, hiring managers and
recruiters are doing well if three of every four submittals make it to interviews (75% efficiency).
Flashing-red-light warnings should start to go off if less than one in two (50% efficiency) make it
to interviews, meaning it is time to investigate to determine problem areas
.
Interview Efficiency: Next, the interview efficiency is a measure of the hiring manager's
screening process. It is defined as the number of candidates who receive offers divided by the
number of candidates interviewed. You would expect this number to be lower than the submittal
efficiency, since most people want to interview several candidates for one offer. The goal is to
shoot for 30% efficiency which means your organization is making offers to one out of every
three to four interviewed candidates. If less than one in six candidates interviewed actually
receives an offer (16% efficiency), it should be an indicator that it is time to investigate again.
With low efficiencies there could be any number of problems, most of which are issues in the
screening process, including a hiring manager who is overly selective. However, recruiters can be
great assets during this phase because they can help out with scheduling interviews, prepping
candidates, gathering immediate interview feedback, and generally guiding the process.
Offer Efficiency: The third of the Big 3 is the offer efficiency, a measure of how many
candidates actually accept your offers and start working with you. It is calculated as the number
of candidates accepting offers divided by the total number of offers. Since the recruiters should
be helping hiring managers extend offers that will be accepted, as well as pre-closing the
candidates, we expect this ratio to be high. If the process yields 80% offer efficiency, or four out
of five offers are accepted, you are doing well. Conversely, if less than three in five offers are
accepted (60% efficiency), then something in your recruiting processes will need to be modified
or addressed. Low offer efficiencies could mean the recruiter is doing a poor job of pre-closing
the candidate or negating counteroffers. Or perhaps the offers themselves are undesirable,
whether from a financial standpoint or on other dimensions, such as too much travel or an
undesirable work location. Also, as with submittal efficiencies, the offer efficiencies percentage
can be too high. If 100% of people accept your offers, perhaps you are offering too much money
for the job.
The efficiency metrics are relatively easy to gather and calculate, and very helpful in monitoring
the quality of the recruiting process. By investigating the issues indicated by the efficiencies, it's
possible to identify potential problem areas in sufficient time to take corrective action and still
make hires on time.
Another benefit of the efficiency ratios is that by multiplying all three of them together, it's
possible to calculate the expected number of hires from the number of submittals, assisting your
planning process. For example, multiplying the lower
bound of the "good" efficiencies (75% X 30% X 80%) = 18%, which means you need to submit
between five and six candidates to get one hire.