What is the significance of the 37% rule in hiring?

The 37% rule, when applied to hiring, suggests that a company should spend the first 37% of the interview process to understand the talent pool and then hire the next best candidate. This could potentially improve the company's overall performance by increasing the chances of hiring the best candidate. However, it's important to note that this rule is based on probability and doesn't guarantee the best outcome every time.

The 37% rule can be used to improve the efficiency of the hiring process by applying it to the interview process. If an employer is interviewing 100 applicants, they should spend the first 37% of interviews familiarizing themselves with the talent pool and identifying the best qualities. After this point, they should hire the next applicant who appears to be the best so far. This approach gives the company a 37% chance of hiring the best candidate. The odds of success increase with fewer applicants.