Job offer metrics help you measure the quality of your job offers and, by extension, your recruitment process. Here are frequently asked questions and answers on job offer metrics:
Offer acceptance rate (OAR) shows what percentage of candidates accepted your job offer. This metric indicates how attractive and competitive your job offers are. If your OAR starts declining, then your team won’t hire the candidates they want. A low OAR could lead you to rethink your jobs salary ranges or try new ways of communicating with candidates.
Here’s the formula to measure your offer acceptance rate (OAR):
Aim high when it comes to offer acceptance rate (OAR.) An offer acceptance rate above 90 percent indicates that there’s a good match between a company’s requirements and candidates’ expectations.
To get valuable insight, calculate your OAR correctly. For example, imagine you want to include formal offers in your calculations. Yet, hiring managers usually extend verbal, informal offers first. Candidates who reject these verbal offers (which should still be counted against your OAR) don’t reach the point of receiving formal offers at all, thus skewing your results. Be consistent in how you measure your OAR and communicate your methodology to hiring teams.
To improve your offer acceptance rate, ask candidates why they rejected your job offers through a candidate experience survey. Their feedback will help you reshape your job offers and improve your OAR. Here are a few ways to address common issues:
- Ensure your job offers are competitive. Research benefits and salaries through sites like Glassdoor and PayScale.com to ensure your offers are on par with industry standards.
- Communicate with candidates effectively. Your OAR could be low because you aren’t attracting the most relevant candidates. Ask candidates about their salary expectations and motivation in applying for the job early on over a screening call.
- Discuss any issues during the interview. Candidates may face various issues that prevent them from accepting a job (e.g. long commute, inflexible hours.) Address those issues during the interview, by communicating any policies on flexible hours, remote work or relocation opportunities.
- Be clear and consistent about the job. For example, if you mention the job is at the company’s headquarters in the job ad, the final offer shouldn’t be for a position at a company branch.
- Mind your candidate experience. Positive candidate experience is the first step towards persuading the best candidates to accept your job offer. It shows you are a respectful employer that values employees.
- Introduce your team to candidates. Potential coworkers matter when considering a job offer, as everyone wants to work with people who will make them feel challenged and comfortable. Talk about your team or take your finalist to meet your team members in person.
This metric tracks the primary reasons candidates give for accepting your job offers. To measure the “Reasons Offers are Being Accepted” metric, ask your new hires why they accepted your job through your candidate experience survey. It’s best to use an open-ended question to gain more personalized insight. When you have enough data, group answers under a few useful categories (e.g. competitive salary, challenging job.)
The “Reasons Offers are Being Accepted” metric indicates what areas your candidates find most important when they consider accepting a job offer at your company. Here are two examples of ways to use this knowledge:
- Prioritize elements that matter. For example, if your new hires’ top reason for accepting your job offer is your benefits package, you can use that to enhance your employer brand (e.g. by displaying your benefits prominently on your careers page) or attract more qualified candidates (e.g. by mentioning benefits in your job ads.)
- Inform your team’s strategy for closing candidates. Your hiring team sells job openings to the best candidates. Knowing what most candidates value can help them deliver a more effective pitch.
The “Reasons Offers are Being Accepted” metric tracks the primary reasons candidates give for rejecting your job offers. This metric offers insight into what you can do to ensure your best candidates accept your offers.
You could measure the reasons offers are being rejected in various ways:
- Check your candidates’ communication with your hiring team. Some candidates may state a reason for rejecting your job offer in their rejection email or mention a concern during offer negotiations.
- Ask candidates to complete an anonymous candidate experience survey. Use open-ended questions to get the most descriptive responses (e.g. What are the two most important reasons for you rejecting our job offer?)
- Track feedback on social media. Candidates may indicate why they rejected your job offer online. Compile comments to gain actionable insight.