How is the selection ratio calculated?

The selection ratio is a measure used in human resource management to determine the efficiency of the hiring process. It is calculated by taking the number of hires and dividing it by the number of qualified applicants. This computation provides insight into how selective an organization is in its hiring process. A lower selection ratio indicates a more stringent selection process, signifying that only a small percentage of qualified applicants are hired, while a higher ratio suggests a broader acceptance of candidates.

This measurement is crucial for understanding the effectiveness of recruitment strategies and ensuring that organizations attract and select the right talent. It helps HR professionals assess the quality of incoming applications relative to the number of hires made, enabling them to refine their hiring processes for better outcomes in the future. By focusing on qualified applicants, this calculation emphasizes the importance of evaluating the applicant pool adequately before making hiring decisions.