Selection Ratio Theory

Selection Ratio Theory relates to how organizations choose candidates for jobs. The selection ratio is the percentage of applicants hired out of all applicants. When the selection ratio is low (hiring a small percentage), hiring managers can be more selective, choosing only the best candidates, which tends to improve overall employee quality. Conversely, a high selection ratio means more candidates are hired, making it harder to differentiate quality, possibly lowering overall standards. This theory helps organizations balance the number of hires with maintaining high-quality employees to optimize workforce effectiveness.