As the world of work changes, so do the ways in which we measure the success of our recruitment strategies. Today we present 3 top resons why you should measure quality of hire and how to do it.
Time-to-hire used to be the primary metric by which companies judged the effectiveness of their recruiting efforts. But once we start measuring the cost of recruitment the results will show that focusing on time to hire will not bring us savings.
Instead, companies are now turning their attention to quality of hire as a way to measure the success of their recruitment strategies.
What is quality of hire?
Quality of hire (QoH) measures the value new hires bring to a company.
According to LinkedIn’s report, these are the three most common indicators that companies use:
- New hire performance metrics are used by. Including measurements that indicate a new hire adds value like meeting sales targets or achieving goals in customer satisfaction ratings etc.
- Turnover and retention metrics are used by They give an indication of whether new hires are good fits.
- Hiring manager satisfaction ratings
- Employee / new hires engagement surveys
With the chosen indicators you can measure QoH for a new hire through a formula QoH = (New hire performance + new hire engagement + HR satisfaction)/3 QoH = (80% + 85% + 90%)/3 QoH = 85%
Why is quality of hire important?
There are a number of reasons why quality of hire is becoming increasingly important for companies, take a look at 3 top reason why you should measure the quality of hire:
It saves you money: Hiring employees who don’t work out can be very costly for your business (30 % of that person’s annual salary !) Not only do you have to go through the time and expense of recruiting and training someone new, but you also lose out on productivity while they’re getting up to speed. On the other hand, employees who excel in their roles tend to stay with your company longer, which saves you money in the long run.
It helps you attract top talent: If you can show that your company hires employees who excel in their roles, you’ll be able to attract even more top talent. This is because top performers want to work with other top performers.
It boosts morale: When your team is composed of high-performing individuals who enjoy their work and get along well together, it can have a positive impact on morale throughout the entire organization.
So how can you improve quality of hire at your company?
While there is no one-size-fits-all solution, there are a few things you can do to get started:
Define what success looks like: Before you can improve quality of hire, you need to first define what success looks like for your company. What skills and qualities are most important for employees in your organization? What type of people tend to excel in their roles? Once you have a clear idea of what you’re looking for, you can start revamping your recruitment strategy accordingly.
Review your current process: Take a close look at your current recruitment process and see where there might be room for improvement. Are you attracting the right candidates? Are you doing enough to screen candidates before extending an offer? Are your hiring managers properly trained on how to assess candidates? By identifying areas where your process could be improved, you can make small tweaks that will have a big impact on quality of hire.
Make sure everyone is aligned: One common reason why companies fail to improve quality of hire is because there’s misalignment between different departments within the organization. For example, if HR isn’t aware of the specific skills and qualities that hiring managers are looking for, they won’t be able to effectively screen candidates during the application process. To avoid this issue, make sure everyone involved in the recruitment process is on the same page from start to finish .
Test and measure: As with any initiative, it’s important to test and measure your progress along the way so you can adjust as needed. Keep track of metrics such as time-to-hire, cost-per-hire , and turnover rate , as well as more subjective measures such as customer satisfaction levels and team morale . By continuously testing and measuring , you can fine-tune your strategy until you achieve desired results .
Improving quality of hire should be a priority for any company that wants to stay competitive in today’s market . By taking steps to define what success looks like , review your current processes , ensure everyone is aligned , and test & measure regularly ,you can make small improvements that will have a big impact on your bottom line .
Fifteen years of experience in various areas related to working with clients in the highest standards of customer service, recruitment areas like employer branding, creating strategies facilitating the process, augmenting and building new teams.
