Performance-based Hiring · Talent Analytics

Your hiring process is losing great people you never even know about

Type 2 hiring errors — great candidates not hired — are invisible, unmeasured, and compounding. This dashboard shows you exactly where they occur and what they cost.

67%
of great candidates lost
in a typical funnel
5×
more diagnostic power
from quantified achievements
80%
of internal / referral candidates
are genuinely strong

Two kinds of hiring mistakes — only one gets measured

Companies obsess over Type 1 errors — hiring someone bad. Those failures are visible, attributable, and painful. Type 2 errors — great candidates you filtered out, ghosted, or lost to a competing offer — are invisible. Nobody gets blamed. The cost gets diffused across the organization as chronic underperformance. Use the dashboard below to visualize exactly where your funnel leaks great talent.

01

Sourcing quality matters most

Your Bayesian prior — the % of great candidates in your pool — is set before a single resume is reviewed. Referrals and internal moves enter at 60–80% quality. Job boards enter at 10–15%. No amount of selection skill fixes a weak pool.

02

Each stage multiplies the loss

A 20% leak at every stage compounds. Six stages of 20% leakage leaves you with only 26% of the great candidates who entered. The losses aren't additive — they're multiplicative.

03

The fix is systemic, not surgical

You can't patch one stage and call it done. Performance-based Hiring addresses Type 2 errors at every stage — from how the job is defined to how the offer is structured. That's what a Kaizen Hiring Audit measures.

The Leaky Funnel Dashboard

Adjust the sliders to match your hiring reality. Set the candidates reached per sourcing channel, the quality of each channel's pool, and the leak rate at each funnel stage. The waterfall at the bottom shows your true yield of great candidates.

Step 1 — Sourcing channels

Enter how many people you reach per channel, set pool quality (% who are truly strong), and the engage/apply rate.

Step 2 — Funnel leak rates

Drag each slider to reflect how often great candidates are lost at that stage. Default values reflect typical companies.

Step 3 — Read the yield

The waterfall shows where your Type 2 losses accumulate. A well-run PBH system should achieve 60%+ yield of great candidates.

Step 4 — Benchmark your system

If your yield is below 40%, a Kaizen Hiring Audit will identify the specific stages causing the most leakage — and how to fix them.

Total reached
—
Great in pool
—
Entered funnel
—
Great hired
—
Type 2 error rate
—
Stage 0 — Sourcing channel mix
ChannelReachedPool quality Engage / apply rateEnter
Total entering funnel
—
Blended great %
—
Great candidates entering
—
Stages 1–5 — Funnel leak rates (% of great candidates lost)
StageLeak rate LostRemaining
Yield waterfall — great candidates only
Analyzing your funnel...
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Kaizen Hiring Audit · Free for Qualifying Companies

Find out exactly where your funnel is leaking great people

A Kaizen Hiring Audit scores your hiring system on six dimensions — from job definition through post-hire success — and identifies the specific stages driving your Type 2 error rate. Scored 0–100. Delivered within 48 hours.

Composite 0–100 score across six hiring dimensions
Identifies your highest-leverage Type 2 error stages
Grounded in Sackett et al. (2022) validity research
No cost. No obligation. Delivered in 48 hours.
Request Your Kaizen Audit →
Used by enterprise HR & talent acquisition leaders across North America