Formula
| Term | Meaning |
|---|---|
| Hires from a source | Joiners in the period whose application came through that channel, credited to the first channel that brought them in. |
| Total hires | All joiners in the period, so the shares of all sources add up to 100 percent. |
Worked example
A pharma distributor in Ahmedabad hired 60 people in FY 2025-26: 18 through employee referrals, 24 through job portals, 9 through its careers page, 6 through consultants and 3 from a campus drive.
- Total hires = 18 + 24 + 9 + 6 + 3 = 60
- Referrals = 18 / 60 x 100 = 30%; job portals = 24 / 60 x 100 = 40%
- Careers page = 9 / 60 x 100 = 15%; consultants = 6 / 60 x 100 = 10%; campus = 3 / 60 x 100 = 5%
- Check: 30 + 40 + 15 + 10 + 5 = 100%
Recording the source correctly
The metric is only as good as the source recorded for each candidate. Ask for the source at application from a fixed list, and let recruiters correct it at screening. When a candidate came through two channels, such as a portal application followed by a referral, agree one rule, usually the first channel that brought them in, and apply it every time. An 'other' category bigger than any real channel means the data needs cleaning before anyone draws conclusions.
Combining source with cost and quality
A channel that brings many hires is not automatically the best one. Put three numbers side by side for each source: share of hires, cost per hire and new hire retention at 12 months. A consultant may bring few hires at a high cost but fill hard senior roles, while a portal may bring many hires who leave early. Compare each source with its own figure from last year before cutting or expanding it.
- Share of hires by source.
- Cost per hire by source.
- 12-month retention and probation confirmation by source.
Pitfalls that muddy the picture
Counting applications by source instead of hires gives a different metric, source of applicants, which rewards channels that send volume. Mixing internal moves with external hires hides how much you promote from within, so report internal hires as their own source. Small numbers swing wildly: with only 10 hires in a year, one hire moves a share by 10 points, so look at two or three years together.
How to improve it
- Make the source a required field at application, chosen from a fixed list.
- Pay referral bonuses for referred hires who stay past probation, not merely for joining.
- Keep the careers page current and link to it from every job advertisement.
- Review each consultant's hires and 12-month retention before renewing the contract.
- Invest in campus drives only for roles where campus hires have stayed and grown.
Tracking it in ZeniaHR
ZeniaHR's Recruitment Hub brings careers page applications straight onto the pipeline board, and screening notes can record the channel for candidates who came through referrals, portals, consultants or walk-ins. There is no ready source-of-hire report, so tag the source for each joiner in a spreadsheet, calculate the shares, then add cost and retention from your own records.
See it on your own data
A 30-minute demo on a video call. We set up your departments, shifts and leave rules and show attendance, leave and payroll running for your team. Free for your first 50 employees.
Book a free demoSee pricingFrequently asked questions
How do you calculate source of hire?
For each recruitment channel, divide the number of hires it produced in the period by the total hires, then multiply by 100. The shares of all channels should add up to 100 percent. For example, 18 referral hires out of 60 total hires means referrals were the source of 30 percent of hires.
Which source of hire is best?
No single source is best for every role. Judge each channel on three things together: how many hires it produces, what each hire costs, and how many of those hires are still with you after a year. Referrals and direct applications avoid consultant fees, but your own retention numbers should make the final call.
How should I record source when a candidate came through two channels?
Pick one rule and apply it every time. Most companies credit the first channel that brought the candidate in, such as the portal where they first applied, and note the second channel in comments. Changing the rule from quarter to quarter makes the trend meaningless.