When it comes to hiring, a lot has changed over the past few years. Economic conditions have led to major changes in the structure of the recruitment process, and the development of Internet technology has provided us with the ability to collect, manage, and analyze information in ways that once seemed impossible. These two trends have not been independent of one another, and developing effective hiring strategies requires a good understanding of their inter-relationship.  Psychologists often make use of a statistic known as the “Selection Ratio” to help and guide us when while making employee selection strategies and assisting organizations in making important choices related to their hiring process. The concept of the selection ratio does an excellent job of summarizing the relationship between the current talent market and the influence of technology on today’s hiring process. Online screening help businesses to take advantage of the favorable selection ratios that have been created by the availability of technology and the state of the current talent market. Therefore selection ratio plays a pivot role in hiring process. HR managers take great care in the hiring process, since productivity of business depends on employees who work there. While hiring can be a long and arduous process, deliberation is absolutely necessary to ensure that the right applicants have been chosen. Those in charge of hiring often look to use methods of testing applicants that are as accurate as possible in terms of predicting job success. In many cases, the best chance of hiring good applicants depends upon attaining a good selection ratio.

The selection ratio can be defined as the number of hired candidates to the total number of candidates. The selection ratio is very similar to the number of applicants per opening.

Selection Ratio= Number of Hired candidates/ Total number of Candidates

This ratio is also known as Submittals to Hire Ratio/Applicant to hire ratio. The selection ratio provides information such as the value of different assessment tools and can be used to estimate the utility of a given selection and recruitment system.

The selection ratio’s value must range between 0 and 1.where 0 indicates low selection ratio and 1 indicates high selection ratio. It is assumed that lower the ratio; the better would be the selection decision, as selector can be more selective in their hiring. When it comes to selection ratios an ideal situation is that you have a great many applicants for a position (big denominator) and only need to hire a few of them (small numerator). This is exactly the situation that has been created by the current talent market. A low selection ratio also means organizations can be pickier and can afford to raise minimum requirements, by choosing only the best applicants. By using certain accurate testing methods for hiring, and combining them with a low selection ratio, business HR professionals can be practically guaranteed a high success rate for their new employees.

 A low ratio can be achieved:

  1. When denominator (the number on the bottom) is large.
  2. When numerator (the number on the top) is small.
  3. When denominator is large and at the same times the numerator is small.

Selection ration can be defined well with this example:

Imagine that a company decides to open up a new branch that requires hiring of 20 new workers. Once the positions are posted, 100 people apply for that job.

Therefore selection ratio becomes:

Selection ratio = 20/100

Selection ratio = 0.2

which means that 20 percent of all applicants will be hired.



By using certain accurate testing methods for hiring, and combining them with a low selection ratio, business HR professionals can be practically guaranteed a high success rate for their new employees.

Selection  ratios also depends on  how well job is advertised, how attractive an employer brand may be to applicants, the level of compensation, the general health of the labor market, and other factors.  Online job postings often draw in a large applicant pool, with an elevated applicant-to-hire ratio. The applicant-to-hire ratio is a useful hiring metric because it helps to shape the employer’s expectation of how intensive the hiring process will be .The selection ratio provides information about the value of assessment tools, such as interviews, work samples, and psychometric tests. These days’ things have changed. In today’s world the number of available positions has shrunk considerably. This means that numerators of selection ratios have gotten much smaller across the board. At the same time, because there are more job seekers than available positions and because it is so easy to search for and apply to jobs using the Internet, organizations is being flooded with applications. This means that the denominators of selection ratios have gotten much bigger across the board. These conditions have created a situation in which most organizations are experiencing selection ratios that are very small. It should be an extremely favorable position for organizations. Unfortunately, many organizations are losing out because they are not currently equipped to take advantage of these favorable selection ratios.

Taking advantage of good selection ratios requires the use of the right set of tools. Organizations that are not using these tools are squandering their chance to catch the best fish in the talent pool. Taking proper advantage of a good selection ratio requires organizations to be choosy. The choosier you are the more you will be able to make a favorable selection ratio work for you. Being choosy requires the use of job-related selection tools that will provide you with the predictive efficiency needed to clearly identify the best available talent. When it comes to making good selection choices, each increase in your ability to predict which applicants are most suited for the job will lead directly to an increase in the overall ROI of your selection system. Fortunately, technology and science have provided a set of tools that, when used properly, can really help organizations make sure they are capitalizing on today’s talent buyers market by helping them process large numbers of applicants while simultaneously making sound decisions about which applicants to hire. Selection Ratios plays a pivotal role in recruitment process.