Most startups and SMBs don’t have much insight into what the average recruiting funnel looks like. What’s a normal amount of candidates to pass on to a screen? Are other companies interviewing this many candidates before they find a hire? Are they experiencing the same bottlenecks?
Today, we’re excited to release our first recruiting benchmarks report exclusively for startups and SMBs (companies with 1 to 200 employees) to help answer these vital questions (a.k.a. give you a sanity check). With data spanning 12 months from approximately 600 companies and 1.5 million candidate considerations, you can finally see how your recruiting funnel compares to the average.
Leverage these insights for a view into how the recruiting process varies depending on the function you’re hiring for or a candidate’s origin, and finally understand how much work goes into every hire.
What these conversion rates mean for you
If you’re feeling picky during your screens, it might be unfounded. The new candidate to screen stage is the most selective part of the recruiting process for most companies, and gets more selective as companies, along with their applicant pools, grow.
If you’re screening well under 17 percent of your candidates and not making hires with the candidates who are left, however, consider whether your process is too strict. If no, are there opportunities to increase the overall quality of your candidates through efforts like specific job descriptions and targeted employer branding?
At the other end of the process, only 69 percent of candidates actually accept their offers, meaning that about one in three candidates will turn you down. When it comes to engineers, 41 percent, so almost one in two candidates, decide to go in a different direction. To get your offer acceptance rate as close to 100 percent as possible, pay close attention to every facet of your candidate experience – things like timely communication, engaged teammates, organized interviews, and transparent negotiations.
How to leverage hire ratios for goal setting
Hire ratio data can be extremely helpful in goal-setting and planning. If you know that it takes 86 new candidates, 15 screens, 4.7 onsite interviews, and 1.5 offers, on average, to make a hire, it can help you answer questions like: Can we realistically hit our headcount goals given our current team and resources? If you’re a founder or executive at a young team without anyone dedicated to recruiting full-time, what’s the value of your time and could it be spent better elsewhere?
Use the data to inform whether it’s time to adjust your goals or invest in additional resources (like tools or headcount) that will help you hit them.
Access the full report here to see where you’re beating the average and where you’re trailing behind.