Outbound Wiki

SDR hiring funnel metrics

Measuring applicant flow, interview conversion, offer acceptance and time to hire for SDR recruiting.

Use each handoff to answer these questions: do we have enough qualified candidates in the pipeline, is the interview process efficient, and are we closing the candidates we want to hire?1 A full top of funnel can hide a bottom of funnel failure. Candidates may reach the offer stage and decline too often.2 Adding more candidates in that situation wastes more time on people who will not accept.3 Inspect the offer stage before increasing volume.

Set up the funnel

Start with the questions and choose metrics that answer them. This ties the review to decisions and avoids counting everything available.

An intentional funnel has defined stages, measurable conversion points, and a post-offer process.4 A practical stage model runs through awareness, attraction, interest, application, screening, interview, and offer or onboarding.5 A signed offer is an intermediate checkpoint because the funnel ends when the new hire is productive and staying.6

For each handoff, record the candidates who entered, the candidates who advanced, the conversion rate, and the time elapsed. Calculate conversion as candidates who advance divided by candidates who entered. These ratios use simple math and show how the process operates.7 Tag every candidate by source and outcome so you can inspect both volume and progression.

Measure applicant flow

Applicant flow shows whether the top and middle of the funnel can produce enough candidates for the interviews you need. Keep the raw counts, but make progression the main read.

Track how many candidates each source provides, how many pass screening, and how many reach interviews. Measuring how far candidates progress can tell you more about source quality than counting applicants from each source.8 A large applicant volume from a job board does not establish that those candidates are relevant to the role.9

A job board can provide 30 applicants and an in-house referral program 12, while six candidates from each source reach interviews.10 The referral program is the higher-quality channel despite its lower volume. Use source quality results to decide where advertising, job board spending, and sourcing time should go.11

Once you know which channels produce candidates who progress into the interview funnel, use that progression as your applicant flow metric.

Check screening and interview conversion

The middle of the funnel shows where interest becomes a credible hiring conversation. Read each handoff separately so a weak overall result does not hide the stage that needs attention.

Calculate conversion from application to screening, screening to interview, and interview to offer. Recruiting metrics should focus on performance and signal spikes that deserve investigation or correction.12

Use the qualified candidate stage as a quality check. A quality candidate is recruiting's version of a qualified lead.13 When conversion falls, inspect that handoff and review the records behind the change before adding more activity.

When the interview funnel shows how many qualified candidates reach selection and how long each handoff takes, keep the denominator visible in every report. A percentage without its starting pool can mislead the next decision.

Diagnose offer acceptance

Offer acceptance is its own diagnostic stage. It shows whether the process has produced an offer candidates will accept and whether earlier conversion rates are translating into hires.

Keep offered, accepted, and declined counts beside the acceptance rate and the time from offer to decision. Ask, "What's happening at the offer stage keeping great-fit candidates from saying "yes" to us?".14 Review the answer by source, interview history, and stated decline reason.

The funnel can show which stage needs attention.15 If candidates progress through interviews but acceptance stays weak, investigate the offer experience before changing the applicant flow. Move on when you have a working explanation for declines and can see whether a change improves acceptance.

Track time through the funnel

Speed becomes useful when you can locate where it accumulates. Break the total into stage intervals so a slow process points to a specific handoff.

Compared with time-to-fill, source-to-close and workflow conversion rates collect more meaningful information from each hiring step.16 Source-to-close measures how quickly candidates accept an employment offer while excluding the sourcing phase.17 Track time from application to screening, screening to interview, interview to offer, and offer to acceptance.

A month and a half from application to offer for a top-tier candidate is not a winning strategy because that candidate may have competing offers.18 Use that signal when reviewing delays between application and offer. For roles that stay open for hiring all year, measuring from requisition opening through the new hire's start does not indicate recruiting effectiveness.19

If the process runs longer than the norm, decide how you will keep candidates engaged throughout it.20 Measure candidate satisfaction consistently instead of relying on anecdotes. More than half of companies either do not track it or use only anecdotal information.21 When a stage time spikes, inspect that stage before judging the whole funnel.

What not to do

Use metrics that point to a decision and avoid these errors.

  • Do not treat activity counts as performance measures. They can provide little information about performance.22
  • Do not abandon the funnel when results fall. Keep testing changes with data so you can solve the right problem and close better candidates faster.23

Sources

  1. 1
    “Ryan said her team starts thinking about which metrics to use by asking questions about the hiring process: “Do we have enough qualified candidates in the pipeline? Is our interview process efficient? Are we closing the candidates we want to hire?””
  2. 2
    “Candidates are making it to the offer stage but declining those offers far too frequently.”
  3. 3
    “If you bring more people into the funnel, the problem will compound, as you’ll be wasting even more of your time with candidates who won’t accept offers.”
  4. 4
    “An intentional funnel has defined stages, measurable conversion points, and a process for the post-offer period.”
  5. 5
    “A recruiting funnel has 7 stages: awareness, attraction, interest, application, screening, interview, and offer/onboarding.”
  6. 6
    “The funnel does not end when the candidate signs. It ends when the new hire is productive and staying.”
  7. 7
    “While these involve simple math, they offer valuable insight into your recruiting process and how it is operating.”
  8. 8
    “It’s common to measure how many applicants each source provides, but it might be more important to measure how far candidates from a particular source get in the hiring process—that is, the quality of the source.”
  9. 9
    “Some job boards will give you a huge volume of applicants but that doesn’t mean that they will be relevant to the role”
  10. 10
    “For example, if a company receives 30 applicants from a job board and 12 applicants from an in-house referral program, one might assume that the job board is more valuable. However, if only six of the job board candidates make it to the interview stage, while six referrals make it to the same stage, then the referral source is a higher-quality channel.”
  11. 11
    “[Source quality data] has major ramifications on advertising and job board spend, and should influence where you spend the bulk of your time sourcing”
  12. 12
    “Recruiting metrics should “be very focused and performance-related, and send signals, so if you see a spike in something, you can dig in further or fix something awry.””
  13. 13
    “It’s recruiting’s version of a qualified lead”
  14. 14
    “Instead, you must focus on why your offer acceptance rate is so low. What’s happening at the offer stage keeping great-fit candidates from saying “yes” to us?”
  15. 15
    “Your recruiting funnel contains a wealth of information, alerting you to the stage/s that need your attention.”
  16. 16
    “As opposed to the more common time-to-fill metric, more-targeted measurements such as source-to-close and the various workflow conversion rates of the recruitment funnel will collect more meaningful data from each step of the hiring process.”
  17. 17
    “Source-to-close measures how quickly candidates accept an employment offer minus the sourcing phase.”
  18. 18
    “A month and a half from the application to the offer for a top-tier candidate is not a winning strategy, because those candidates are probably going to have multiple competing offers, and the sooner you can make a serious offer, the better.”
  19. 19
    “For Ryan at Greenhouse, a metric for the opening of a requisition through the new hire actually starting the job would not be indicative of how effective their recruiting process is because for certain roles, they typically have one open date and continue to hire for it all year.”
  20. 20
    “It also brings up the conversation of candidate experience—if you must have a process that is longer than the norm, how can you keep the candidate engaged throughout?”
  21. 21
    “Candidate satisfaction is another measure companies use to evaluate individual recruiter performance, but more than half of companies either aren’t tracking it at all or are only using anecdotal information to support this.”
  22. 22
    “It’s easy to create metrics that count activities but don’t tell you much about performance”
  23. 23
    “If you treat your recruiting funnel like a product – constantly tweaking it with data-driven curiosity – you’ll focus on solving the right problems and ultimately close better candidates faster.”