How to improve onsite-to-offer ratios for more efficient hiring
The Karat Team
It’s not uncommon for us to start working with a new client and discover that onsite-to-offer ratios are in the 5:1, 10:1, or even 15:1 range.
For engineering teams, high onsite-to-offer ratios represent a massive tax. Having a 10:1 ratio means that for every new hire, you’re conducting 10 onsite interview loops, each with somewhere between 3 to 8 people.
That doesn’t even factor in the time spent on technical interviews, phone screens, and candidate sourcing. At that rate, it’s easy to imagine spending well over 100 hours of engineering time per engineering hire, which is an unfair request for software engineers who are already overworked to the point of needing to hire more colleagues.
But what should an onsite-to-offer ratio be?
The exact number depends on the particulars of your market, geography, recruiting and role requirements, but anything over 15:1 sounds unnecessarily high. To start with, if your ratio is over 10:1, try cutting it in half, or even aim for 5:1.
For more efficient hiring, consider the following six steps to improve onsite-to-offer ratios. Let’s get to them!
1. Look at performance reviews
Performance reviews, improvement plans, and promotion requirements all tell you what actually gets assessed for a particular role. They give you cues into the most common reasons behind employees succeeding or struggle and are strong indicators of what you need to improve for your next hiring process.
Identify the skills and experiences that aren’t only super relevant to the role but also important when making a hiring decision. Cross off knowledge or skills that can be learned on the job. Prioritize the competencies that remain and then build interviews along with a decision-making process around the top items. This is your signal.
2. Check onsite notes and assessment rubrics
Before changing your hiring process too much, assess the consistency and predictability of your current process.
Describe and write down the reasons candidates are rejected to improve the way in which you reach out to potential candidates and the kind of experience you provide for them. Evaluate the relevance and importance of the skill/knowledge/experience behind each reason. In other words, think about whether each competency contributes through signal or noise to the final hiring decision.
When it comes to interview question guides and assessment rubrics, explicitly clarify what’s considered noise and what is considered signal. Update how questions are asked and how observations are recorded to make it easier for interviewers to succeed in this task.
3. Break the onsite-to-offer decision-making process down into four steps
Improve your current onsite process by making each step in the interviewing process more intentional. This gives you the opportunity to use every step for a separate goal as follows:
- Conducting an interview that gives the candidate the best opportunity to present relevant and important competencies (aka signal). Question guides and communication techniques play a large role here.
- Correctly observing and recording this signal. Question guides and interview rubrics play a large role here.
- Making a yes/no hiring decision based on the specific objectives and bar of this particular interview. A good way to know if this part of the process needs work is if interviewers are coming to debrief meetings confused, uncertain, or wishing they had more time or had asked different questions. After filling out an assessment, interviewers should feel confident about the yes/no result of their conduct and observations.
- Making a yes/no hiring decision based on the results of multiple interviews. You may find that you have multiple “successful engineering manager” personas and that this decision-making algorithm is not simply a single bar across all competencies. Whatever the algorithm is, it should be written down as an explicit guiding force. Hiring decisions are necessarily complex human decisions, but data and guidelines can increase the intentionality, consistency, and quality of these decisions at scale.
This process can be a lengthy one so you might want to consider working with experienced Interview Engineers to help you conduct interviews that align with your hiring bar. At Karat, we connect you with former software engineers who are trained to hold inclusive interviews and help you make a data-driven hiring decision. On top of this, you’ll be able to match a candidate’s interviewing preferences through 24/7 applicant scheduling and support.
4. Find hiring signal earlier
Once you understand why candidates are being rejected, assess that skill earlier in the process. For example, if the System Design interview is a common cause of onsite rejection, move some system design questions into an earlier gate.
While you could move the System Design interview into a new gate wholesale, often you’ll want to create a smaller, more efficient module to get at the core competencies, either as part of a phone screen or as part of a 1-hour pre-onsite gate that contains a few different modules.
You can even create smaller interview modules by being specific about the competencies you’re assessing. Being specific will allow you to cull extraneous context and tasks to turn a 45-minute interview into a 15-minute foray.
“System Design” is a topic, not a competency. Consider Bloom’s Taxonomy and be specific about the verb and objective.
Do you need your software engineering managers to create a structure from scratch? Or to demonstrate that they can analyze two solutions proposed by a senior architect? Do they need to evaluate the judgement of their architects, or exercise good judgement themselves? Do they have to remember the CAP theorem? Or should they generate insightful conclusions based on known constraints around system consistency and availability?
5. Beware proxy-based signals
It may be that asking an engineering manager to write code is a good proxy for the problem-solving skills, strategic thinking, and general learning and mastery skills that you’re looking for, not to mention exposing experience likely to elicit empathy and understanding for and from their reports.
Similarly, while it may be that someone could learn a particular skill or piece of knowledge on the job, say the CAP theorem, it’s also a proxy for real experience and may suggest a candidate hasn’t yet grappled with the challenges of distributed systems, and may not be ready to set up their team for success on an ambitious redesign.
The problem is that proxies are a double-edged sword. They hide what you’re getting at for both interviewers and candidates, which means things tend to go wrong in the assessment happening on both sides of the table. Without turning this essay into a book, my main advice is this: whenever there are directly relevant and important competencies that you can assess, assess those first.
If you still need a hiring decision to rest atop a proxy, make it as explicit as possible for everyone. For example, you might clarify for the candidate: “This isn’t a coding interview, this is a strategic problem-solving interview. We’ll first ask behavioral questions to explore how you’ve used strategic thinking to solve problems in the past. Then we’ll ask some greatly simplified toy problems to see how you solve problems and utilize strategy in real-time.”
For the behavioral part, you might try to dig into a technical challenge, or you might be ok with investigating their strategic skills when handling a people management quandary or a surprise challenge impacting a business deadline.
For the skill assessment, maybe it’s more about problem-solving skills. If you’re looking for candidates’ ability to come up with approaches and analyze trade-offs, you may realize the coding is not even important. That’s signal you can uncover in a subsequent code review interview, or in a different module where they explain code they’ve written previously. Ideally, this would be a patch you can also look at, too, or else they’ll have to paint you a detailed picture using words.
Or perhaps, you want to see them spend 5 minutes writing code. At the same time, you might also be telling interviewers not to waste time while the candidate nervously overlooks a missed semicolon or forgets a function name. Just state this and move on; it’s noise to this particular signal.
After this stage, continue to try different approaches and measure your onsite-to-offer ratios until you start seeing the improvement you’re looking for.
6. Beware of turning candidates away
Senior candidates, especially the ones you want to hire, are likely happily employed, or else considering multiple exciting opportunities. The start of your pipeline could be the start of a long-term relationship; the foundation matters A LOT to candidates.
That conversation, ideally with a hiring manager, is a chance for the candidate to:
- Learn if you’re worth their time. Excellent senior candidates have the privilege of being choosy, while also having limited free time and time-off.
- Share their experience, strengths, and interests. Having a conversation where you ask some behavioral questions is ok, but giving a senior candidate a test before introductions is deeply unsatisfying.
Regarding the first point, you can still make efficient hires for humility, ability to compromise, respect for the less empowered, etc. The goal is to understand that the leverage equation is different compared to hiring college graduates. In early-career hiring, it’s more common to ask candidates to prove they can code, often with very little veneer.
A better trade-off for senior candidates is not a code test, but rather a written application. Give the candidate a chance to answer a few questions about their past experience, strengths, and future interests. Replacing the conversation with a coding exam is not a decision about saving time, but about what competencies matter.
For senior candidates, you want to maintain the initial human connection as much as possible. Reduce the onsite-to-offer ratio by making the initial phone screen assess more signal.
You may need a 1-hour gate between a non-technical recruiter phone screen and the 4-5 hour onsite. However, before introducing new competencies into that gate, consider what your current interviews are doing right and what you may want to change. Move the common rejection reasons earlier.
Work backward from job success. Getting the right answers to the wrong questions creates chaotic results, which is near impossible to improve iteratively. Once you know specifically what competencies are relevant and important to an effective hiring decision, the interview questions (and guides and structured interview rubrics) practically write themselves.
Hope these tips for efficient hiring helped!
Industry Trends & Research
It may be the spookiest day of the year for those celebrating Halloween, but something else has been haunting the tech industry for quite some time: the technical hiring process. Job seekers looking for new opportunities in 2023 have had some pretty eerie experiences — experiences rife with scary strategies, terrifying tactics, and ancient rituals […]
Industry Trends & Research
The tech hiring landscape continues to shift as the world’s workforce navigates global economic uncertainty. Fortunately, these shifts create opportunities for software developers and engineers. The Bureau of Labor Statistics predicts the job market for these professionals remains resilient with an expected 26% increase in employment over the next decade. Furthermore, Karat’s 2023 Hiring Trends […]
As technology’s hiring landscape rapidly evolves, the pursuit of top talent is more competitive than ever before. To confidently hire the best tech professionals possible, talent acquisition (TA) leaders are using artificial intelligence (AI) and automation to transform how they source, evaluate, and hire. Earlier this week, Scott Bonneau, Karat’s EVP of Product and Operations, […]