For HR leaders and talent acquisition professionals, applicant drop-off rate is one of the most critical recruiting metrics. It measures the percentage of candidates who begin an online application but fail to complete it. High drop-off rates can be an early warning sign that your candidate experience needs improvement. While exit rates track how employees leave your organization after being hired, drop-off rates impact the very top of the hiring funnel. In short, both matter — but they signal different opportunities for action.

Drop-off occurs for many reasons: long or confusing applications, unclear expectations, or a mismatch between the job posting and candidate expectations. A LiveCareer survey of more than 500 job seekers reported that more than half (57%) of respondents said they abandoned a job application midway due to complicated or time-consuming requirements.

If not addressed, high drop-off rates can lead to fewer qualified candidates, slower hiring cycles, and more pressure on recruiters to fill roles quickly. For HR leaders, understanding where candidates disengage is essential for improving both efficiency and quality of hire.

Drop-Off Rates vs Exit Rates

It’s important to distinguish between drop-off rates and exit rates. Drop-off rate focuses on pre-hire candidate behavior: who starts the application but leaves before submitting. Exit rate, on the other hand, tracks post-hire employee attrition. While drop-off affects your ability to attract candidates, exit rates affect retention and workforce stability.

How to calculate each metric:

Applicant drop-off rate = (Number of applications started − Number of applications completed ÷ Number of applications started) × 100

Exit rate = (Number of employee exits during a period ÷ Average number of employees during that period) × 100

Monitoring both metrics gives HR leaders a full picture of talent lifecycle health. High drop-off rates may indicate issues with application design, employer branding, or candidate engagement. High exit rates often signal challenges with onboarding, culture, or career development. Both require attention, but your interventions look different: one at the front end of recruitment, the other at employee retention.

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