Professional in Human Resources (PHR) Practice Exam

Yield ratios are a crucial metric used in human resources, particularly in the recruitment process. They help to quantify the effectiveness of recruitment efforts by measuring how many candidates from each stage of the hiring process move on to the next stage. For example, you can calculate the yield ratio by comparing the number of candidates who applied to the total number of candidates who were ultimately hired.

The use of yield ratios allows HR professionals to assess the efficiency of various recruitment sources and strategies. If a particular source yields a high number of qualified candidates relative to the number of candidates sourced, it indicates that the recruitment efforts tied to that source are effective. Conversely, if a source has a low yield ratio, it may suggest the need for a reevaluation of the strategy being used or the channels being tapped for attracting candidates.

In summary, yield ratios provide insight into the recruitment process by quantifying how successful different recruitment efforts are at bringing in candidates who ultimately reach the hiring stage.