Example data table
| Period | Total Referrals | Qualified | Interviews | Offers | Hires | Time to Hire (days) | Cost per Hire ($) | ROI (%) |
|---|---|---|---|---|---|---|---|---|
| Q1 | 120 | 72 | 40 | 18 | 12 | 28 | 425.00 | 606.0 |
| Q2 | 95 | 50 | 31 | 14 | 9 | 30 | 510.00 | 441.2 |
| Q3 | 140 | 90 | 52 | 24 | 15 | 26 | 410.00 | 751.5 |
Formulas used
- Qualified Rate = (Qualified Referrals ÷ Total Referrals) × 100
- Interview Rate = (Interviews ÷ Qualified Referrals) × 100
- Offer Rate = (Offers ÷ Interviews) × 100
- Offer Acceptance = (Hires ÷ Offers) × 100
- Hire Rate (Total) = (Hires ÷ Total Referrals) × 100
- Labor Cost = Employee Hours × Hourly Rate
- Total Program Cost = (Hires × Reward per Hire) + Admin Cost + Labor Cost
- Cost per Hire = Total Program Cost ÷ Hires
- ROI = ((Hires × Value per Hire) − Total Program Cost) ÷ Total Program Cost × 100
- Efficiency Score combines quality, conversion, cost, and speed, then applies the 90-day retention factor.
How to use this calculator
- Choose a consistent period (monthly or quarterly).
- Enter referral counts through each funnel stage.
- Add realistic costs: rewards, admin spend, and time.
- Set a benchmark time and baseline cost per hire.
- Submit to view efficiency score and bottleneck hint.
- Download CSV/PDF to share with stakeholders.
Why efficiency matters
A referral program is a career planning asset when it produces hires measurably with less waste than other channels. This calculator converts your counts, time, and spending into comparable indicators: hire rate, cost per hire, ROI, and an efficiency score. Use one fixed period, such as a month or quarter, so trends are meaningful. A program can look “busy” with many referrals, yet still be inefficient if qualification or acceptance is low.
Reading funnel signals
Start with Qualified Rate, then track interviews, offers, and hires. For example, 120 referrals, 72 qualified, 40 interviews, 18 offers, and 12 hires yields a 60% qualification rate and a 10% hire rate overall. If interviews are high but offers lag, requirements may be misaligned. If hires lag, candidate experience or compensation may be the constraint. The diagnostic line points to the likely bottleneck.
Cost, savings, and ROI
Total Program Cost includes rewards, admin spend, and labor time valued at an hourly rate. Divide by hires to get cost per hire, then compare it with your baseline from other sourcing methods. If baseline is $1,800 and program cost per hire is $425, savings per hire is $1,375. ROI uses your estimated value per hire to show whether the program pays back beyond cost reduction.
Speed and retention impact
Time to hire affects acceptance and productivity. The speed score compares your average time to hire against a benchmark, so you can quantify whether referrals are actually faster. Retention matters too: a program that hires quickly but loses people inside 90 days is not efficient. The efficiency score applies a retention factor, so a 92% retention rate protects the score, while a 70% rate reduces it even if the funnel looks strong.
Practical optimization steps
Improve results by tuning one stage at a time. Raise qualification with clearer role briefs, sample resumes, and referral templates. Increase interviews by setting service-level targets for recruiter follow-up. Improve offers by calibrating hiring managers with structured scorecards. Improve acceptance by shortening turnaround and confirming compensation early. Re-run the calculator after each change, export results, and document what moved your score and why for the next cycle.
FAQs
1) What does the efficiency score represent?
It blends quality, conversion, cost, and hiring speed into a 0–100 score, then adjusts by 90-day retention. Use it to compare periods or teams, not to judge a single candidate.
2) What happens if hires are zero?
The tool avoids division errors by showing cost per hire and ROI as 0. Focus on funnel rates to find where candidates drop, then rerun after you generate at least one hire.
3) How should I estimate value per hire?
Use a conservative figure tied to productivity, revenue, or avoided agency fees. If you are unsure, start with a range and compare ROI under low, medium, and high scenarios.
4) Which time period works best?
Choose a consistent window, such as monthly or quarterly, and keep definitions stable. Consistency makes trends reliable and helps you separate seasonality from real program improvements.
5) How can I raise offer acceptance?
Shorten decision timelines, confirm compensation early, and keep candidates warm between steps. Track average time to hire and acceptance together, because slow processes often cause strong candidates to accept elsewhere.
6) Do exports include personal data?
Exports contain only the metrics shown in your results table. They are generated in your browser for quick sharing, so avoid adding names or emails to inputs if you plan to distribute the files.