Offer to Joining Ratio

Offer to joining ratio is a very straightforward metric, and can be expressed as a percentage of offers
accepted. It can be also termed as Offer acceptance ratio which shows the percentage of candidates
who accepted a formal job offer.

Offer Acceptance Ratio = Number of offers accepted/ Number of offers

Candidates dropping off after an offer is made is very frustrating for a recruitment team and there is
a cost associated with the almost hire. These can be sourcing cost, assessment cost, background
verification cost and opportunity cost.

There can be multiple reasons why candidates choose to drop off. These can be:

 Salary Expectation Mismatch

 Role Clarity and Role importance
 Candidate not sure about leaving their current organization
 Candidate using the offer to get leverage in his/her current company
 Relocation constraints
 Poor image of the company

REASONS FOR CANDIDATE NOT ACCEPTING THE

OFFER (OYO)
Others Salary Mismatch
10% 15%
Retained in
existing company
15%

Role Clarity
Offer Terms 20%
5%

Personal
Reason/Not
Revealed
35%

OYO - Offer to Join Ratio = 35%

Out of the above reasons, drop offs due to Salary Mismatch and Role Clarity can be prevented to an
extent. At the same time, review portals like Glassdoor provide another reason which the candidate
do not mention outright. This is due to the poor image of the company due to the bad reviews given
by lot of employees.

Target Offer to Join Ratio = 50%

Steps Needed:

1. Provide details of the role being offered so that candidate understands the same. Clear and
detailed job description should be provided.
2. Set clear expectations from the beginning in terms of salary, work and role.
3. Improve the policies related to work environment, job security which can help in building
the brand image helping them to attract talent.
4. Communicate continuously with the candidate through their offer to joining period.

It has been observed that working on the preventable reasons can improve the joining ratio by 20-
30%.