Measuring Quality of Hire

Posted by Debbie Imboden on January 19, 2015

Excellence Compass

Measuring Quality of Hire

How does your recruitment process stack up? Is your interview and selection process helping you clearly identify not only capable people but the ones that can succeed within your organizational environment? When you bring new people into roles, is your post-hire process adding or detracting from employee success?

Defining and tracking a quality of hire metric can help you understand this and a lot more.

The formula for Quality of Hire should be comprised of recruitment-focused quality measures and post-hire contribution / performance quality. The factors that contribute the data for each side of this metric can differ from one organization to the next. HRsmart's quality of hire report plots recruitment efficacy and directly correlates this to post-hire performance appraisal scores.

Why is quality of hire important?

The quality of hire metric can take your team from reporting straight stats to reporting on efficacy. QOH can, with the help of other departments like finance, be use to support and make strategic decisions, while supporting HR in the boardroom in ROI-based discussions.

Because of its organizational impact, quality of hire is a more important metric to track than time to fill or cost per hire

5 tips for improving your quality of hire?

  1. Corporate culture / brand: repulsion and attraction - Reflect accurately, your corporate culture in your postings and on your career site. Finding the right fit is a two-way process. Being transparent about your culture supports candidate self-screening
  2. Job description - Modify your job descriptions to reflect performance outcomes expected rather than skills and competencies required.
  3. Use of screening tools - Assessments, questionnaires, practical tests, reference checks and background screening can all reduce subjective decision making errors associated with recruitment.
  4. Better interviews - Use of panels, multiple interviewers, relevant behavioral-based questions, use of interview scoring sheets, and interview training for hiring managers.
  5. Onboarding - In addition to training and logistical details, ensure your onboarding process includes early check-in interviews with the new hire, their manager and coworkers, and you not only set short-term performance objectives but measure against them early in your new team member's tenure.

Additional ways you can leverage QOH metrics for more insight

  • Include candidate source data to illustrate any linkages between hire/performance and source. This will allow your team to better align your recruitment budget to the resources that net you the best results.
  • Work with finance to translate the ROI in dollars, the impact of having a top performer vs. an average performer on organizational productivity and revenue per employee. This knowledge can help support further investment in recruitment, onboarding and training.
  • Pull in the reporting manager, business unit, location details, and work location of new hire, i.e. remote, in office, etc. to set benchmarks and better understand how quality of hire is impacted and/or related to demographics across the team.