In the competitive market of candidate metrics, it’s absolutely critical to enhance the candidate experience throughout the entire application process. With the importance of candidate experience metrics and recruitment metrics rising, you simply cannot afford to lose the talent that you’ve spent time and money attracting.
This might sound straightforward, but abandonment rate, especially the application drop-off rate and candidate drop-off rate, is a significant concern. Many companies remain oblivious to where, when, and why candidates abandon their application processes.
Let’s initiate the discussion with recruitment metrics, followed by a dive into how we can apply them to enhance your broader talent acquisition journey.
Overall candidate abandonment rate = number of candidates still in the process at shortlist stage, minus the total number of candidates who landed on your careers page, divided by that total number again. Or:
At its core, monitoring abandonment rate or application drop-off rate is pivotal. It acts as a generalized diagnostic tool that indicates the efficiency of your recruitment process.
Imagine you had 100 visitors on your careers (or job ad) page, but only 10 make it to your shortlist. That’s a staggering 90% loss of your potential talent pool at various stages.
This leads to a crucial inquiry: How can one gauge the candidate drop-off rate at each phase of the application process?
Assuming you had 100 visitors to your careers page, and only 20 completed the primary application form, it implies an 80% candidate drop-off right at the outset.
This isn’t ideal, but now you have a clearer picture. You can now scrutinize the page to identify potential barriers that deter candidates from applying. Questions to consider might include:
- Is the page too long?
- Does it have too much text?
- Is the ‘apply’ button clearly shown?
- Is the form too long, requiring too much information to fill out?
- Are your perks/EVP attributes clearly displayed?
Without assessing each stage independently, it’s challenging to ascertain why candidates aren’t persisting.
To emphasize, alongside the overall abandonment rate, it’s imperative to measure the candidate drop-off rate at each step of your talent acquisition process. The subsequent section can guide your focus.
Where, when, and why do candidates abandon the application process?
It’s a general notion that an elongated application and interview process results in a higher candidate drop-off rate. However, this doesn’t provide actionable insights. To rectify issues, you need precise, localized data to pinpoint and address the bottlenecks.
Recent data from a 2022 Aptitude Research report on pivotal interviewing trends disclosed that candidates tend to abandon the process at these stages:
- 22% of candidates drop out at the application stage
- 24% at the screening stage
- 25% at the interview stage
- 18% at the assessment stage
- 9% at the offer stage
These statistics are invaluable. By auditing your recruitment process against these benchmarks, weak areas become evident.
For instance, a lengthy, multi-step interview might seem ideal for assessing cultural fit, but if it’s cumbersome for candidates and requires coordination among several stakeholders, it might be counterproductive.
The interview stage witnesses the highest application drop-off rate, with 25% of candidates opting out. This doesn’t come as a surprise, given the lengthy and often ineffective nature of many interview processes. Aptitude Research indicates that 33% of companies lack confidence in their interviewing capabilities, and 50% believe they’ve lost potential hires due to subpar interviews.
When surveying HR and TA leaders about their primary interviewing challenges, the responses included:
- Our interview process is too long (52%)
- We make candidates go through too many interviews (39%)
- Out interview process is inconsistent (38%)
- We don’t use objective data to drive decisions (32%)
- We have bias in the interview process (21%)
The lack of objective data is a glaring issue. Nearly a third of companies base their interview and application procedures on assumptions rather than concrete data, leading to inefficiencies.
Yet, 68% of companies admitted to not making any enhancements to the candidate experience this year. So, how many are genuinely evaluating their talent acquisition journey to identify shortcomings?
That’s why this post emphasizes the candidate abandonment rate. It’s a straightforward metric that reflects the vitality of your application process. It’s arguably simpler to measure compared to other intricate recruitment metrics, like quality-of-hire. As the adage goes, “What gets measured, gets managed.”
Start here today, and see what you learn.
(P.S. Sapia’s Ai Smart Chat Interviewer combines the first four stages of your process – application, screening, interviewing, and assessment – together, resulting in an application process that can secure top talent in as little as 24 hours.
Because it’s a chat-based interview with a smart little AI, your team doesn’t need to do anything – everyone who applies gets an interview, immediately. That maximizes your talent pool right from the get-go.
What’s more, our candidate dropout rate is just 15%, on average. That means that 85% of your starting talent pool will stick around.
Why do our candidates stick around? More than 90% of them love the experience. See how we can help you here, today.)
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Joe & the Juice Partners with Sapia.ai, Scaling an Exceptional Candidate Experience and Cutting Time to Hire
Read the full press release about the partnership here.
Joe & the Juice, the trailblazing global juice bar and coffee concept, is renowned for its vibrant culture and commitment to cultivating talent. With humble roots from one store in Copenhagen, now with a presence in 17 markets, Joe & The Juice has built a culture that fosters growth and celebrates individuality.
But, as their footprint expands, so does the challenge of finding and hiring the right talent to embody their unique culture. With over 300,000 applications annually, the traditional hiring process using CVs was falling short – leaving candidates waiting and creating inefficiencies for the recruitment team. To address this, Joe & The Juice turned to Sapia.ai, a pioneer in ethical AI hiring solutions.
A Fresh Approach to Hiring
Through this partnership, Joe & The Juice has transformed its hiring process into an inclusive, efficient, and brand-aligned experience. Instead of faceless CVs, candidates now engage in an innovative chat-based interview that reflects the brand’s energy and ethos. Available in multiple languages, the AI-driven interview screens for alignment with the “Juicer DNA” and the brand’s core values, ensuring that every candidate feels seen and valued.
Candidates receive an engaging and fair interview experience as well as personality insights and coaching tips as part of their journey. In fact, 93% of candidates have found these insights useful, helping to deliver a world-class experience to candidates who are also potential guests of the brand.
“Every candidate interaction reflects our brand,” Sebastian Jeppesen, Global Head of Recruitment, shared. “Sapia.ai makes our recruitment process fair, enriching, and culture-driven.”
Results That Matter
For Joe & The Juice, the collaboration has yielded impressive results:
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33% Reduction in Screening Time: Pre-vetted shortlists from Sapia.ai’s platform ensure that recruiters can focus on top candidates, getting them behind the bar faster.
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Improved Candidate Satisfaction: With a 9/10 satisfaction score from over 55,000 interviews, candidates appreciate the fairness and transparency of the process.
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Bias-Free Hiring: By eliminating CVs and integrating blind AI that prioritizes fairness, Joe & The Juice ensures their hiring reflects the diverse communities they serve.
Frederik Rosenstand, Group Director of People & Development at Joe & The Juice, highlighted the transformative impact: “Our juicers are our future leaders, so using ethical AI to find the people who belong at Joe is critical to our long-term success. And now we do that with a fair, unbiased experience that aligns directly with our brand.”
Trailblazing for the hospitality industry
In an industry so wholly centred on people, Joe & the Juice is paving the way for similar brands to adopt technology that enables inclusive, human-first experiences that can reflect a brand’s core values.
If you’re curious about how Sapia.ai can transform your hiring process, check out our full case study on Joe & The Juice here.
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Sapia.ai Wrapped 2024
It’s been a year of Big Moves at Sapia.ai. From welcoming groundbreaking brands to achieving incredible milestones in our product innovation and scale, we’re pushing the boundaries of what’s possible in hiring.
And we’re just getting started 🚀
Take a look at the highlights of 2024
All-in-one hiring platform
This year, with the addition of Live Interview, we’re proud to say our platform now covers screening, assessing and scheduling.
It’s an all-in-one volume hiring platform that enables our customers to deliver a world-leading experience from application through to offer.
Supercharging hiring efficiency
Every 15 seconds, a candidate is interviewed with Sapia.ai.
This year, we’ve saved hiring managers and recruiters hours of precious time that can now be used for higher-value tasks.
Giving candidates the best experience
Our platform allows candidates to be their best selves, so our customers can find the people that truly belong with them. They’re proud to use a technology that’s changing hiring, for good.
Leading the way in AI for hiring
We’ve continued to push the boundaries in leveraging ethical AI for hiring, with new products on the way for Coaching, Internal Mobility & Interview Builders.
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Situational Judgement Tests vs. AI Chat Interviews: A Modern Perspective on Candidate Assessment
Choosing the right tool for assessing candidates can be challenging. For years, situational judgement tests (SJTs) have been a common choice for evaluating behaviour and decision-making skills. However, they come with limitations that can make the hiring process less effective and less inclusive.
AI-enabled chat-based interviews, such as Sapia.ai, provide organisations with a modern alternative. They focus on understanding candidates as individuals and creating a hiring experience that is both fair and insightful while enabling efficient screening and selection.
This shift raises important questions: Are SJTs still a tool that should be considered for volume hiring? And what do AI assessments offer in comparison?
1. The Static Nature of SJTs
Traditional SJTs use predefined multiple-choice questions to assess behavioural tendencies and situational knowledge. While useful for screening, these static frameworks lack the flexibility to adapt based on real-world performance data or evolving role requirements.
Once created, SJTs don’t adapt to new data or evolving organisational needs. They rely on fixed scenarios and responses that may not fully reflect the dynamic realities of modern workplaces, and as a result, their relevance may diminish over time.
AI-enabled chat interviews, on the other hand, are inherently adaptive. Using machine learning, these tools can continuously refine their models based on feedback from real-world outcomes such as hiring or turnover data. This ability to evolve ensures the assessments align with organisations’ needs.
2. Richer Data Through Open-Ended Responses
One of the main critiques of SJTs is their reliance on multiple-choice responses. While structured and straightforward, these options may not capture the full scope of a candidate’s thinking, communication skills, or problem-solving ability. The approach is often limiting, reducing complex human behaviour to a few predefined choices.
AI-enabled chat interviews work more holistically and dynamically. These tools provide a more complete picture of a person by allowing candidates to answer questions in their own words. Natural language processing (NLP) analyses their responses, offering insights into personality traits, communication skills, and behavioural tendencies. This open-ended format lets candidates express themselves authentically, giving employers a deeper understanding of their potential.
3. The Candidate Experience: Stressful or Supportive?
SJTs often include time constraints and rigid formats, which can create pressure for candidates. This is especially true when candidates feel forced to choose options that don’t fully reflect how they would actually behave. The process can feel impersonal, even transactional.
In contrast, chat-based interviews are designed to be conversational and low-pressure for candidates. By removing time limits and adopting a familiar chat interface, these tools help candidates feel more at ease. They also frequently include personalised feedback, turning the assessment into a valuable experience for the candidate, not just the employer.
4. Addressing Bias and Fairness
Traditional SJTs are prone to transparency issues, as candidates can often identify and select the “best practice” answers without revealing their true tendencies. Additionally, static test designs can unintentionally embed bias; due to the nature of the timed test, SJTs have been found to disadvantage some groups.
AI chat interviews, when developed ethically within a framework like Sapia.ai’s FAIR Hiring Framework, eliminate explicit bias by relying solely on the content of a candidate’s responses. Their machine learning models are continuously validated for fairness, ensuring that hiring decisions are free from subjective judgments or irrelevant demographic factors.
5. An Assessment That Improves Over Time
Workplaces are constantly changing, and hiring tools need to keep up. SJTs’ fixed nature can make them less effective as roles evolve or organizational priorities shift. They provide a snapshot but not a dynamic view of what’s needed.
AI-enabled chat interviews are built to adapt. With feedback loops and continuous learning, they incorporate real-world hiring outcomes—like retention and performance data—into their models. This ensures that assessments stay relevant and effective over time.
Rethinking Candidate Assessment
As hiring demands grow more complex, so does the need for tools that can capture the whole person, not just their response to hypothetical scenarios. While SJTs have played an important role in hiring practices, they are increasingly being replaced by tools like AI-enabled chat interviews.
These modern approaches provide richer data, adapt to changing needs, and create a richer and more engaging experience for candidates. Perhaps most importantly, they emphasise fairness and inclusivity, aligning with the growing demand for unbiased hiring practices.
For organisations evaluating their assessment tools, the question isn’t just which method is “better.” Understanding the specific needs of your roles, teams, and candidates will help you choose tools that help you make decisions that are both informed and equitable.