Sales Hiring Efficiency

Posted by Dave Kurlan on Wed, Aug 30, 2006 @ 23:08 PM

I've addressed the lack of hirable candidates before - but in different ways! Today, I introduce a new metric, Sales Hiring Efficiency.

A client with chronically high turnover is frustrated that only 15% of their candidates are hirable when the normal rate is closer to 30%. Let's consider their history.

Previous to utilizing OMG's Express Screens and STAR the company had the following hiring efficiency:

Candidates - 100
Candidates deemed hirable - 100% (they thought everyone was hirable!)
Candidates Interviewed - 100
Percentage of candidates hired - 20%
Turnover - 90%
Hiring Efficiency (Retained as a percentage of Interviews) - 2%

After using OMG's Express Screens and STAR the company compiled the following hiring efficiency:

Candidates - 100
Candidates recommended for hire - 15%
Candidates Interviewed - 15
Percentage of candidates hired - 50%
Turnover - 20%
Hiring Efficiency (Retained as a percentage of Interviews) - 40%

As you can see, the company improved its hiring efficiency 20 fold. Would more hirable candidates help? Sure. Are they heading in the wrong direction? Absolutely not! Which model would you rather be using? If you picked the first one, you must be a fan of inefficiency and getting little accomplished because you would be starting over with new candidates every single week.

(C) Copyright 2006 Objective Management Group, Inc.

Topics: recruiting

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Best-Selling Author, Keynote Speaker and Sales Thought Leader,  Dave Kurlan's Understanding the Sales Force Blog has earned medals for the Top Sales & Marketing Blog award for nine consecutive years. This article earned a Bronze Medal for Top Sales Blog post in 2016, this one earned a Silver medal for 2017, and this article earned Silver for 2018. Read more about Dave

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