What does a selection ratio of 9 mean?
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Selection is the process of choosing a qualified person for specific role who can successfully deliver valuable contributions to the organization. The term selection can be applied to many aspects of the process, such as recruitment, hiring, and acculturation. However, it most commonly refers to the selection of workers. A selection system should depend on job analysis. This ensures that the selection criteria are job related and propose value additions for the organization.
The requirements for a selection system are knowledge, skills, abilities, and other characteristics, collectively known as KSAOs. Personnel-selection systems employ evidence-based practices to determine the most qualified candidates, which can include both new candidates and individuals within the organization.
Common selection tools include ability tests (cognitive, physical, or psychomotor), knowledge tests, personality tests, structured interviews, the systematic collection of biographical data, and work samples. Development and implementation of such screening methods is sometimes done by human resources departments. Some organizations may hire consultants or firms that specialize in developing personnel-selection systems rather than developing them internally.
Two major factors determining the quality of a newly hired employee are predictor validity and selection ratio. The predictor cutoff is a limit distinguishing between passing and failing scores on a selection test—people with scores above it are hired or further considered while those with scores below it are not. This cutoff can be a very useful hiring tool, but it is only valuable if it is actually predictive of the type of performance the hiring managers are seeking.
The selection ratio (SR) is the number of job openings (n) divided by the number of job applicants (N). When the SR is equal to 1, the use of any selection device has little meaning, but this is not often the case as there are usually more applicants than job openings. As N increases, the quality of hires is likely to also increase: if you have 500 applicants for 3 job openings, you will likely find people with higher-quality work among those 500 than if you had only 5 applicants for the same 3 job openings.
SAT score averages
SAT scores used as university admissions criteria are a good example of the use of predictor cutoff. Some universities will not admit students below a certain SAT (or ACT, GMAT, etc.) score. Employers use a similar method with different metrics to filter high volume applications.
What is selection-ratio?
Selection ratio is the term mostly used by Human Resources (HR) to validate the total number of hired employees to the total number of employees in the organization. In other words, it is similar to the number of applicants who are applying per opening. The Applicant to Hire ratio is the ratio of the total number of hires to the total number of applicants for a particular position. The Applicant-to-Hire ratio is one of the important HR metrics that help in summarizing the relationship between the market and the hiring process.
What is the formula for calculating the selection ratio?
Let us explore the meaning of the selection ratio with an example. Consider there is a single vacant position in an organization. The total number of applicants to be hired is 1, and the total number of applications received from the applicants to the organization is 20.
Now, while applying the formula:
Selection ratio = 1/20 =>0.05 =>5%
Now, consider there are multiple vacant positions in an organization. The total number of applicants hired is 50, and the applications received are 500.
Now, while applying the formula:
Selection ratio = 50/500 =>0.1 =>10%
The HR prefers a relatively low ratio because the lower the ratio, the better the result.
What are the factors that affect the Selection Ratio?
Ø If an organization posts the job vacancy in a proper channel, then the company will receive more applicants. Hence, the selection ratio will be meager.
Ø The brand of an organization plays a vital role in the hiring ratio. If the organization’s brand is more popular, the applications will be more.
Ø When the compensation policies provided by an organization are far better than the competitor, the application flow will increase.
What is a good selection ratio?
An average interview to offer ratio is about 4.8:1. A good ratio is 3:1 or better. This metric is useful because it also shows the average number of hours spent on interviewing in the hiring process. It also indicates how much time senior members of your team spend on making a hire.
How do you interpret the selection ratio?
The selection ratio refers to the number of hired candidates compared to the total number of candidates. The selection ratio is very similar to the number of applicants per opening. When there's a high number of candidates, the ratio approaches 0.
Is a high selection ratio good?
The lower the ratio the better. HR professionals prefer a low ratio because it defines that they are highly selective in their hiring. When the hiring process is stringent the applicant to hire ratios are lower.
What is selection percentage?
Calculating Selection Rate To calculate, take the total number of people who moved to the next stage and divide by the total number of people that were in the previous stage. Multiply the result by 100 to get the percentage.