From Hiring to High Performance: A Blueprint for Calculating Quality of Hire

What is Quality of Hire?

First, it is essential to separate Recruiting Effectiveness from Quality of Hire. Often, organizations lump both terms together. Recruiting Effectiveness is a metric used to assess an organization's hiring process and the success of the new hires it produces.

This metric is evaluated by considering factors such as Time to Hire, Time to Fill, Passthrough Rates, Savings Generated, & Hiring Costs. Quality of Hire refers to the output of the individual hire.

This metric is evaluated by considering factors such as Performance Ratings, Promotion, Tenure, & Engagement. Both metrics are important as it can affect an organization's bottom line and its workforce's overall efficiency and productivity.

It is important to note that we cannot calculate the Quality of Hire without understanding Recruiting Efficiency. By increasing Recruiting Efficiency, we improve the overall quality of hire because a more efficient process reduces the time spent on hiring and the chances of hiring the wrong candidates.

This leads to a more qualified pool of applicants with the skills and experience necessary to fulfill the job requirements successfully. Additionally, a more efficient process can reduce costs associated with the hiring process, allowing an organization to reinvest those savings into improving the quality of hire.

The key to maximizing the Quality of Hire and Recruiting Efficiency is identifying areas of improvement and developing strategies to address them.

Maximizing Quality of Hire

The key to maximizing the Quality of Hire and Recruiting Efficiency is identifying areas of improvement and developing strategies to address them. This could include focusing on candidate sourcing and screening processes and using data-driven insights to guide decision making

Furthermore, organizations should prioritize candidate engagement and continuously measure their performance against these metrics. Doing so will provide organizations with the necessary tools to make informed decisions about their hiring process to achieve the best Quality in hiring.

How to calculate Quality of Hire

The metrics organizations can include when calculating Quality of Hire can vary from organization to organization based on their values, what metrics they track, and how they track those metrics. However, a few of the standard metrics that analysts use for measuring the Quality of Hire include — Download the full e-book here