The Recruiting Numbers Game – Part 2: How Many Candidates to Hire
Deciding how many student or recent graduate hires to make can be a daunting task. There are tons of factors at play – projected company growth, departmental needs, and budgets to name a few. Wouldn’t it be great if there was some sort of formula for deciding how many intern and entry level hires to make? Fortunately, Celanese’s Brad Simons has done just that.
Simons wrote this post in the Campus Recruiters Club on LinkedIn explaining two formulas he uses when deciding how many students and recent grads to pick up for the coming recruiting season. When hiring recent graduates Simons uses this formula:
(Company headcount) X (anticipated turnover) X (target percentage of positions the organization would like to fill with fresh graduates)
At a company with 200 Employees, an anticipated turnover of 12%, and a goal to replace 25% of their anticipated attrition with recent graduates, the formula would read as follows:
(200 company headcount) X (12% anticipated turnover) X (25% target percentage of positions the organization would like to fill with fresh graduates)
Without all the clutter: 200 X .12 X .25 = 6 recent graduate hires
Simons has put together a formula for intern hires as well. This formula, however, is a bit more complicated as it takes into account 1) the expected growth of the company while the intern finishes school and 2) the number of interns you believe will be a good fit to transition to full time upon graduation. The formula is as follows:
(Anticipated company headcount in two years) X (anticipated attrition in two years) X (percentage of openings you would like to replace with upcoming graduates in two years) X (expected percentage recent graduate positions filled with intern conversions) / (expected intern conversion rate)
Let’s imagine that our previous 200 person company will be up to 250 employees in two years and plug it into the formula. We can assume that their anticipated attrition will be down to 10% in 2 years because of all the great recent graduate hires they’ll be making. This also means that they’ll want to fill 35% of their openings with recent graduates and that they’d like to make 75% of their recent graduate hires from a pool of interns, with a 60% intern conversion rate. Fwoof! Here’s how that formula breaks down:
(250 anticipated company headcount in two years) X (10% anticipated attrition in two years) X (35% percentage of openings you would like to replace with upcoming graduates in two years) X (75% expected percentage recent graduate positions filled with intern conversions) / ( 60%expected intern conversion rate)
Without all the clutter: 250 X .10 X .35 X .75 / .60 = ~11 Intern Hires
The best way to really understand these formulas is to try them for yourself (feel free to leave calculations in the comments). We loved them because they take a process that is usually much more complex and overwhelming and simplify it into one number. Keep in mind, it’s never a bad idea to hire an extra intern or recent graduate!