There is a name for the process of winnowing down candidates step by step until only new hires remain: it’s called a recruiting funnel. It starts with many applicants, some of whom are screened out. Then there are candidates; they too shrink in number as phone screens and interviews take place. This brings you to a short list of finalists; then new hires.
In the article below, we will further investigate the purpose and function of a recruitment funnel, providing best practices and real-world examples along the way.
What is a recruitment funnel and why is it important?
A recruitment funnel represents the steps talent teams take to move candidates through the hiring process. Like a sales funnel, the recruitment funnel narrows as it reaches its final destination—in this case, new hires—removing candidates at each stage.
When organizations implement a structured hiring process, they position themselves to create a hiring funnel that is optimized at every stage. A hiring funnel incorporates several distinct steps, each of which comes with its own purpose and set of best practices. Organizations that approach these stages with purpose are better able to achieve the goals inherent to each step.
The benefits of using a recruitment funnel are widespread. A recruitment funnel leads to better processes and practices, improvements that boost the candidate experience, elevate the quality of hires, and even result in time and cost savings.
The 7 key stages of a recruitment funnel
Below, we define the fundamental elements of a robust recruiting funnel and name the metrics that propel progress.
Stage 1: Awareness
The recruiting funnel begins with awareness. Employers must make themselves known to a large number of potential candidates to attract future applicants. Efforts include creating job posts, developing a social media presence and encouraging employee referrals.
These strategies aim at a singular goal: developing a strong employer brand and communicating a thoughtful employee value proposition.
Metrics: Measure awareness by tracking views, clicks and shares on job posts and social media content.
Stage 2: Attraction
The next step in the recruiting funnel is attracting candidates and encouraging them to apply. While the awareness stage focuses on reaching a general audience, the attraction stage targets a more specific group. Employers may create blog posts or videos to appeal to ideal candidates.
Like in the previous stage, an online presence remains key to attracting candidates. Organizations that build an online community through efforts like blogs and email newsletters will create a strong pool of interested candidates who are primed to apply for open roles.
Metrics: By cross-tracking metrics like email and blog subscribers with application stats, employers can pinpoint the efforts that are most successful.
Stage 3: Interest
Next, it’s time for employers to nurture the relationships developing among candidates. Employers can nurture candidate relationships through varied forms of contact.
Some candidates will respond to short, frequent emails updating them on company news, familiarizing them with company benefits, and briefing them on the application process. Other candidates will enjoy more personal opportunities, like webinars and in-person events.
Metrics: By tracking email open and click rates and event registrations, employers can measure the success of their interest efforts.
Stage 4: Application
Once candidates are familiar with an organization, it’s time to push them to apply. It’s essential that employers make it easy for job seekers to apply to their organization.
One way to accomplish this? Optimize application forms for conversion. Applications should feel as effortless as making an online purchase. Companies should collect only the essential information at this stage—they can follow up with promising candidates later.
Employers can also enable their application process for mobile devices. Candidates desire quick applications that can be accomplished on their smartphones.
Metrics: To assess the state of your application process, track both application completion rate and time to apply. These metrics will reveal how many candidates abandon their applications—and how long it takes those who commit to the entire process.
Stage 5: Evaluation
Just like the application stage, it’s important to keep evaluations quick. Employers can use AI tools at the beginning of this process to promote the resumes of candidates whose skills most closely align with an open role.
Employers can make the most of the evaluation stage by conducting pre-employment assessments. Often virtual, these tests reveal which candidates are most suited to a given role. These assessments also help eliminate candidates who would likely flounder on the job.
Metrics: Employers should keep track of the number of applicants screened and the assessment pass rate.
Stage 6: Interview
The interview stage is the last chance employers and applicants have to impress the other. That’s why employers need to provide candidates with an exceptional interview experience.
Employers can create consistent interviews by using structured questions to assess candidates’ skills and cultural fit. Employers should train interviewers to put candidates at ease and represent the employer well.
Metrics: Employers can track the number of interviews conducted. As employers refine their interview process, they should see how post-interview candidate satisfaction changes.
Stage 7: Hire
Finally, it’s time for employers to make a hire. Employers must remember that they’re continuing to compete for candidates, even in this final stage. Employers should extend compelling, competitive job offers that convince candidates to accept their new role immediately.
Employers should continue their efforts to ensure a smooth onboarding experience for new hires. This transition period is an appropriate moment for employers to solicit feedback on the hiring process from new hires.
Metrics: Employers should track offer acceptance rate, time to fill, and new hire retention.
How to optimize your recruitment funnel with data and technology
Employers that want to make the most of their recruitment funnel must enlist the help of data and technology. The most foundational step is to set up funnel tracking with an application tracking system (ATS) or candidate relationship management tool.
Employers can take a number of steps to continually refine their recruitment funnel.
- Identify candidate-to-applicant conversion rates and pinpoint drop-off points at each stage.
- A/B test different job descriptions, emails and landing pages.
- Leverage AI to speed up certain stages, like resume screening and interview scheduling.
- Create more candidate touchpoints with chatbots that can answer candidate FAQs.
- Automate personalized messages that keep candidate communications flowing.
Measuring the ROI of your recruitment funnel
Organizations spending time, money and effort on their recruitment funnels will want to prove the value of their work.
There’s no one way to measure the ROI of a recruitment funnel. In fact, it’s best that employers take a multi-pronged approach. Employers can begin by tracking cost-per-hire and time-to-fill and watching how these rates change as they refine their recruitment funnel.
Next, employers can track the quality of hire and retention rates. These metrics reveal whether an employer’s recruitment funnel is successful in churning out quality candidates. If employers are dissatisfied with their hires, they may need to make changes to even the earliest stages of their funnel.
Finally, organizations can tie hiring results to business KPIs like revenue and productivity. Over time, elevation in the candidate quality should result in better business outcomes.
Recruiting teams that have taken care to optimize their recruiting funnels and track metrics like these need to make leaders aware of their efforts. They should present funnel metrics to leadership in terms that demonstrate the impact of their efforts, in language that leaders less familiar with the recruiting function can understand and appreciate.
Troubleshooting common recruitment funnel challenges
Talent teams looking to improve their recruiting funnels are bound to encounter challenges. Here are a few of the most common funnel frustrations—and some ideas about how to solve them.
- Low application completion rates: This is a signal that the application needs tweaking. The application may be too long, too cumbersome or too involved. The application should be easy enough that it lets lots of candidates through the door.
- Candidate drop-off: When talent disappears between funnel stages, talent teams may need to speed up their recruiting efforts. Candidates may be dropping out of the process because competitors are snapping them up.
- Poor interview experiences: If candidates are reporting dissatisfaction post interviews, it may be time to provide interview training.
- Bottlenecks and capacity constraints: When bottlenecks are halting progress, it’s important to identify where the bottlenecks are occurring. When it comes to capacity issues, talent teams should experiment with generative AI tools.
Candidate experience best practices for each funnel stage
Recruiting funnels don’t just exist to boost application rates or improve time to hire. Their implementation can also help improve the candidate experience. By following these key best practices, talent teams can leverage recruiting funnels to provide a stellar experience for job seekers.
- Write inclusive, compelling job descriptions. A good job description captures job seekers’ attention and convinces them to apply. It should appeal to a wide range of candidates, using inclusive language.
- Communicate transparently. Employers can greatly improve job seekers’ experience by providing them an application timeline—and then sticking to it.
- Give actionable feedback to rejected candidates. Employers can give rejected candidates pointers on how to do better the next time they land in a recruiting funnel.
- Celebrate and welcome new hires. Candidates will enjoy a personalized note, a congratulatory letter or even a small gift when they get the good news.
As a content creator at iCIMS, Alex Oliver is well-versed in content and digital marketing from B2B and B2C organizations big and small.