Chapter 6 (Recruiting Decisions Using the Recruiting Yield Pyramid)

INTRODUCTION

This application will assist you in using a recruiting yield pyramid. External recruiting concepts and the recruiting yield

You will then perform "what-if" analysis using the recruiting yield pyramid to make decisions.

LEARNING OBJECTIVES

Having successfully completed this application, you will be able to:

understand and interpret a recruiting yield pyramid.

make decisions by using the recruiting yield pyramid to perform "what-if" analysis.

discuss and apply external recruiting concepts.

THE APPLICATION

The application consists of two worksheets. Detailed step-by-step instructions may be found below followed by

questions concerning the application results. You will need to use this application before answering those questions.

Before you begin, print this page by clicking on the printer icon, so that you have a hard-copy of both the instructions

and questions.

BACKGROUND

This application involves the use of the "yield ratio." A yield ratio is the ratio of the number of candidates who successfully

pass a stage of the selection process divided by the number of candidates that entered that stage of the selection process.

Yield Ratio = # Candidates Passing Stage / # Candidates Entering Stage

The value of the yield ratio is determined via experience/historical data. Likewise, an estimate of the time required to

complete each stage of the selection process is derived via experience/historical data. Both yield ratios, and time

requirements have been provided for this application for a hypothetical data input operator position.

INSTRUCTIONS

each stage of the selection process may be found in column A, followed by the corresponding yield ratio for each stage of

the selection process in column B. The recruiting yield pyramid is in column C, the time required for each candidate to pass

the stage is computed in column D, and the time required for each stage, in days, is given in column E.

are finished with each question, you may print the results by clicking on the printer icon on the toolbar above. You

will also need to undo the changes that you have made to return the spreadsheet to its original format. The easiest

If at any time you get confused, you may simply exit and reenter the application again to return it to the original format.

pyramid are discussed in Chapter 6 of Fisher, Schoenfeldt, and Shaw, Human Resource Management. Review this

material in your text before continuing. You will use the following worksheet to build a recruiting yield pyramid.

Step1: Proceed to the second worksheet by clicking on the "Sheet2" tab at the bottom of this worksheet. A description of

Step2: In each of the application questions, you will be asked to change one or more data values in Sheet2. When you

way to do this is to hit the undo icon (i.e., left-facing arrow) on the toolbar above -- IF it is available on your toolbar.

Otherwise re-enter the worksheet. Be sure to click on the No button when asked if you wish to save changes.

However, when you do this, be sure to click on the No button when asked if you wish to save changes.

APPLICATION QUESTIONS

1. Assume that we need to hire eight (8) data entry operators. Go to Sheet2 and experiment with cell C10 by entering

different values. As you enter different values, the number of candidates at each stage of the selection process

will be computed and displayed in the various levels of the recruiting yield pyramid. Answer the following questions based

on your results.

(a) How many initial candidates are needed to end up with 8 offers being accepted?

(b) How many candidates will receive a job offer?

(c) Assume that only 150 initial candidates apply. Go to cell C10 and enter 150, then go to cell B7 and experiment with the

yield ratio for the "Receive Job Offer" stage. How high does the yield ratio have to be for this stage in order to get 8

offers accepted, given only 150 initial candidates?

(d) Assume that only 150 candidates apply and that we have increased the yield ratio on the "Receive Job Offer" stage

to the level that you identified in part (c). Now management informs us that the entire process needs to be completed

within 45 days. Go to cell D9 and experiment with the time it takes per candidate for the screening interview. How

quickly, in days per candidate, must we conduct the screening interviews in order to finish in no more than 45 days?

2. Make sure that Sheet2 has been returned to its original format. Assume now that we need to hire fifteen (15) data

entry operators. Begin again by experimenting with cell C10.

(a) How many initial candidates are needed to end up with 15 offers being accepted?

(b) How many candidates will need to undergo a second interview?

(c) Assume that because of short-staffing, it is feasible to conduct only 100 screening interviews. Experiment with cell

B9 to determine the yield ratio that will result in 100 screening interviews.

(d) Assume that the yield ratio identified in part (c) has been adopted. Now determine the yield ratio that is needed for the

"Second Interview" stage in order to end up with 15 offers accepted by experimenting with cell B8.

(e) Assume that the yield ratios of both parts (c) and (d) have been adopted. Management now informs us that the entire

process must be completed within 40 days. Moreover, it has been determined that the time needed to generate initial

contacts can be reduced to 9.9 days, the time to conduct screening interviews can be reduced to 11 days, and the

balance will be made up by reducing the time required for conducting second interviews. Determine how quickly,

in days per candidate, the first three stages of the selection process must take place in order to meet the 40 day

mandate. You will need to experiment with cells D10, D9, and D8, in that order, to find the correct answer.

Chapter 6 (Recruiting Decisions Using the Recruiting Yield Pyramid)

INTRODUCTION

This application will assist you in using a recruiting yield pyramid. External recruiting concepts and the recruiting yield

You will then perform "what-if" analysis using the recruiting yield pyramid to make decisions.

LEARNING OBJECTIVES

Having successfully completed this application, you will be able to:

understand and interpret a recruiting yield pyramid.

pyramid are discussed in Chapter 6 of Fisher, Schoenfeldt, and Shaw, Human Resource Management. Review this

material in your text before continuing. You will use the following worksheet to build a recruiting yield pyramid.

RECRUITING DECISIONS USING THE RECRUITING YIELD PYRAMID

Selection Stage Yield Ratio Days per Candidate Total Days Required

Accept Job offer 0.800 0.0 N/A 7.0 7

Receive Job Offer 0.200 0.0 N/A 7.0 7

Second Interview 0.400 0.0 N/A 7.0 7

Screening Interview 0.500 0.0 N/A 14.0 14

Generate Intial Contacts N/A 0 N/A 14.0 14

49.0