In talent acquisition, the offer acceptance rate (OAR), indicates how well your recruitment process attracts and secures candidates. Understanding and optimizing OAR can greatly impact your ability to hire top talent efficiently.
What is Offer Acceptance Rate?
Offer Acceptance Rate (OAR) measures the percentage of job offers extended by an organisation that is accepted by candidates. It’s calculated as:
Offer Acceptance Rate = ((Number of Accepted Offers) / (Number of Extended Offers)) x 100
For instance, if 50 job offers are made and 40 are accepted, your OAR is 80%.
Why is Offer Acceptance Rate Important?
A high OAR shows your job offers are appealing. A low OAR suggests issues that need addressing, such as compensation, candidate experience, or job expectations.
Key reasons to monitor and improve OAR include
- Cost Efficiency: A low OAR increases recruitment costs as you must re-recruit for the same roles.
- Time-to-Fill: High OAR reduces time-to-fill, helping maintain productivity (learn more about Time-to-Fill here).
- Employer Brand: Poor OAR can damage your employer brand, indicating you're not a preferred employer.
- Strategic Insight: Tracking OAR reveals areas where your recruitment strategy may need adjustment.
Industry Benchmarks
OAR varies by industry, location, and position level. General benchmarks within life sciences hover around 86%. If your OAR is below 80% it might signal a need to revisit your recruitment approach.
How to Improve Offer Acceptance Rate
Improving OAR involves refining your recruitment process to make your offers more competitive and appealing. Consider these strategies:
Enhance Employer Brand: A strong employer brand attracts talent. Invest in branding by showcasing company culture, employee testimonials, and career growth opportunities. Candidates prefer offers from reputable companies.
Competitive Compensation and Benefits: Uncompetitive compensation often leads to offer rejection. Ensure salaries and benefits are in line with industry standards. Consider flexible benefits packages that cater to diverse needs.
Check out our latest salary guide here.
Clear Role and Expectation Communication: Misalignment between expectations and reality leads to offer rejection. Clearly communicate job descriptions, responsibilities, and company culture. Provide realistic job previews to set accurate expectations.
Check out our guide on the Ultimate Job Posting here.
Streamline Recruitment Process: A lengthy process can deter candidates. Ensure your hiring process is efficient and timelines are communicated clearly. Keep candidates engaged with regular updates and prompt follow-ups.
Personalise the Offer: Tailor offers to individual candidates. Consider preferences discussed during the interview—like flexible work arrangements or professional development opportunities.
Engage in Active Negotiation: Be open to negotiation. Flexibility can turn a "no" into a "yes."
Follow Up and Provide Support: After extending an offer, follow up promptly. Offer support as candidates transition into their new role, such as connecting them with future colleagues or providing company resources.
Be Positive: It might sound obvious, but be positive when delivering the offer! Let the candidate know you'd be excited for them to join and the value you believe they can bring.
Conclusion
Improving OAR isn’t just about getting more candidates to say "yes"—it’s about refining your recruitment strategy to attract and secure the best talent efficiently. By focusing on employer branding, competitive compensation, clear communication, and a streamlined process, you can enhance your OAR and overall recruitment success.
These adjustments empower talent acquisition managers and HR professionals to secure the talent their organisations need, driving long-term success.
