In the ever-evolving landscape of talent acquisition, organisations continually seek ways to refine their assessment processes to attract and retain top talent. The challenge, however, lies in measuring the success of these changes effectively. In this post, we'll explore various metrics and indicators that can help you assess the quality of your hires and evaluate the impact of changes to your assessment process.
- Outcomes-Focused Measurement: One of the most effective ways to measure quality of hire is by setting clear, data-driven outcomes for new hires within their first 6 months. These outcomes can be monitored by a third-party source, such as the finance department. If a new hire meets or exceeds these outcomes, they are considered a successful hire. However, implementing this metric at scale can be challenging.
- Attrition in First 6-12 Months: Tracking whether an employee leaves within their first 6-12 months is a common measure of quality of hire. A "failed hire" is typically defined as an early departure. While this metric can indicate potential issues in certain teams, it's important to note that it may not always be the fault of the recruiting organisation if someone leaves within this timeframe.
- Hiring Manager Survey: Conducting surveys with hiring managers at the 6-month anniversary of an employee's start date can provide valuable insights. Simply ask whether they would hire the same person for the role again. A positive response indicates a successful hire. However, getting responses from busy hiring managers can be a challenge.
- Performance Management: Evaluating employee performance over time can be a reliable indicator of hire quality. Exceptional long-term performance may emerge, although most performance management processes follow a normal distribution. In the short term, this metric may not be as helpful.
In the absence of clear quality of hire metrics, consider these leading indicators to measure the impact of assessment process changes.
- Increased Speed of Process: Assessing candidates quickly once they enter the process can indicate that your assessment process is running efficiently. Measuring the time from application to hire for the right candidate can provide valuable insights into operational efficiency.
- Improved Overall Time to Hire: An effective assessment process will attract the right candidates and lead to improved overall time to hire and time to fill positions. You'll find yourself reaching the right candidates more swiftly.
- Improved Funnel Conversion: A well-briefed role often results in higher conversion rates at each stage of the recruiting funnel, including at the offer stage. This signifies that your recruiting team is operating more efficiently and effectively.
- Improved Candidate Satisfaction Scores: Candidates value a swift and focused recruiting process. Positive candidate satisfaction scores can indicate that candidates appreciate the efficiency and professionalism of your assessment process.
- Improved Diversity: An objective assessment process tends to promote diversity by eliminating bias. As your assessment process becomes more objective, you may see an improvement in the diversity of your team.
- Hiring Manager Satisfaction: After implementing and training your revised assessment process, you can expect improved feedback from hiring managers. They will appreciate the higher-quality candidates flowing through the process and the subsequent improvement in their teams.
In conclusion, while measuring the quality of hire can be challenging, organisations can use a combination of metrics and leading indicators to assess the effectiveness of their assessment processes. By focusing on outcomes, efficiency, candidate satisfaction, and diversity, you can gain valuable insights into the success of your talent acquisition efforts. Remember that continuous improvement and adaptability are key to staying competitive in the ever-changing world of recruitment.
