Source of Hire (SoH) is a metric used to measure the effectiveness of various recruitment channels such as job boards, employee referrals, recruitment agencies, college recruiting, and so on. It is used to assess the effectiveness of the recruitment process and to identify areas for improvement.
The formula for Source of Hire is:
Source of Hire = (Number of Hires from a specific channel / Total Number of Hires) * 100%
It is calculated by dividing the number of hires from a specific channel by the total number of hires made and expressing the result as a percentage.
For example, if a company hired 20 employees, and 10 of them came from Employee Referrals, the Source of Hire for Employee Referrals would be 50% (10 / 20 = 0.5 x 100%)
It is essential to track the Source of Hire over time and compare it to industry benchmarks and historical data in order to identify areas where the recruitment process can be improved. It’s also crucial to track the Source of Hire by different segments, such as teams, positions, or locations, in order to pinpoint the source of the problem and take corrective action.
Source of Hire is a key metric for businesses because it allows them to assess the effectiveness of their recruitment channels
It’s also important to remember that the Source of Hire should be aligned with the business requirements and end-user needs; a high Source of Hire from a specific channel can indicate a strong recruitment process, but it can also indicate that the company isn’t investing enough in other recruitment channels.
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