by Olga Kravets, Talent Sourcer at InspHire
Lately, while browsing through jobs in recruitment for a friend of mine who was recently laid off, I came across one that required a “deep understanding of what a healthy recruiting funnel looks like.” It made me wonder: what exactly does this mean? And is there a “golden ratio” for an ideal and healthy recruiting pipeline?
⚠️ Spoiler alert: there is no one-size-fits-all answer! Unfortunately, there is no magic formula for a successful recruitment process. The shape and structure of your funnel will depend on various factors, such as the company’s field, position requirements, technological stack, and even the location you’re recruiting in. Additionally, seasonal variations can also impact your funnel.
However, one thing is certain: it is crucial to continually evaluate and optimize your recruitment process to increase the number of accepted offers while interviewing fewer candidates. Let’s be honest, every recruiter dreams of closing a position after just one interview with the ideal candidate. So, in this article, we’ll explore what a healthy recruiting funnel looks like and how you can improve your recruitment process to achieve this goal.
Let’s start with the definition. How would we describe a healthy recruitment funnel?
A healthy recruiting funnel means that your recruitment process is efficient and effective. This includes having a steady flow of candidates at each stage of the process, from sourcing to hiring, and a low drop-off rate. It also means that the process is transparent and fair, with clear communication throughout and a diverse pool of candidates.
Healthy = Efficient + Effective
How does a healthy recruiting pipeline look like?
A healthy recruiting funnel typically has a large pool of qualified candidates at the top of the funnel, with a high percentage of those candidates making it to the interview stage. From there, a significant percentage of candidates who interview are offered a job, and a high percentage of those offers are accepted. A healthy funnel also has a low time-to-hire and cost-per-hire, indicating a streamlined and efficient process.
The high percentage of qualified candidates who make it to the interview stage
What are the main stages of a recruitment funnel?
The main stages of a recruitment funnel generally consist of several phases: application, screening, interview, and offer. Each company may choose to further subdivide these stages. Personally, I prefer to track the number of applicants at each of the following steps:
- Conversion rate from initial applications to candidates who passed CV screening
- Conversion rate from candidates who passed CV screening to those who passed phone screening
- Conversion rate from candidates who passed phone screening to those who passed the interview stage*
- Conversion rate from candidates who passed the interview stage to those who received job offers
- Conversion rate from candidates who received job offers to those who accepted offers
** This is the most variable step, each company can divide it into many numbers of steps depending on how many stages they have: Home Assignments, Pair Programming, Technical interview, HM interview, HR interview, CTO interview, and so on.*
What numbers can we consider a healthy recruiting funnel?
The specific numbers that indicate a healthy recruiting funnel can vary depending on the company and industry, but some general benchmarks include a time-to-hire of fewer than 30 days and a candidate drop-off rate of less than 50%.
I believe that because of what is going on with the market right now, the numbers will tremendously change, but let’s take a look at the 2022 benchmark made by @Gem, this is an amazing example of how to look at your numbers:
I think in this classification, the pre-onsite stage includes everything from phone pre-screening to home tasks, pair programming, and technical interview, and the onsite stage is more about final interviews with the hiring manager and HR.
Achieving a healthy recruiting funnel requires ongoing evaluation and optimization of your recruitment process. While there’s no magic formula to guarantee success, it’s essential to keep track of healthy numbers and trends to ensure that your work is efficient and identify areas that need improvement. However, it’s important to remember that simply aiming for good numbers isn’t enough; maintaining a balance between quantity and quality is crucial for long-term success.
InspHire is a 360° HR company taking a unique approach of specializing in building and improving HR processes and recruiting for global internet companies. Our approach and industry experience equipped us with deep knowledge and understanding in the world you work in. We cover every aspect of HR services that your company needs, from direct hire placements to trainings, employer branding, and welfare programs.
BONUS: RECRUITMENT GLOSSARY
