Part of the HR metrics hub — the analytics layer of the hiring funnel. It connects to employer operations for planning and to the staffing layer when you need to bridge a gap.
What it measures
Funnel metrics are the conversion rates between stages — application to screen, screen to interview, interview to offer, offer to accept — plus the volume at each stage. Together they show the shape of the funnel and where it narrows fastest.
They are most powerful as a connected view rather than as isolated rates.
Why it matters
The funnel tells you where to focus: a sharp drop at one stage points directly at what to fix, whether that is sourcing quality, screening criteria or the interview experience. It connects volume at the top to outcomes at the bottom.
It also underpins planning — knowing conversion rates lets you estimate the top-of-funnel volume a hire requires.
Formula
Stage conversion = (Candidates advancing to the next stage ÷ Candidates entering the stage) × 100
Compute a conversion for each stage. Multiply stage conversions together to estimate overall pass-through.
Worked example: If 100 enter screening and 40 advance to interview, screen-to-interview conversion is (40 ÷ 100) × 100 = 40%.
Inputs you need
- Defined, consistent funnel stages
- Candidate counts entering and leaving each stage
- A single period for the whole funnel
- Optional segmentation by source or role
How to read it
Read the funnel as a whole: a healthy bottom rate sitting on a collapsing top stage is fragile. The biggest, earliest drop is usually the highest-leverage place to act. Use conversion rates to back-calculate the top-of-funnel volume a role needs.
Beware of vanity volume — lots of applicants mean little if they do not convert. Quality of progression matters more than raw numbers.
Common mistakes
- Inconsistent stage definitions, so conversions are not comparable.
- Optimising volume at the top without watching conversion.
- Reading one stage in isolation.
- Mixing periods or roles within one funnel view.
Operational considerations
- Define stages once and apply them across roles.
- Track conversion and volume together at each stage.
- Target the largest early drop first.
- Use conversions to size top-of-funnel needs in planning.
Use this metric inside the operating cadence: plan with workforce planning and headcount planning, anticipate demand with hiring forecasting, and check it against workforce capacity planning.
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