Recruiting for Precision vs. Cost or Speed

Guys, I’m having a rotten day because I believe that we, as talent acquisition experts, are playing small. Our KPIs are all about fast and cheap. Time To Hire and Cost Per Hire don’t tell us anything about the quality of hire. That is: Are they productive, do they make meaningful contributions and will they stay. It’s up to us to flip this on its head and let everyone know that we’re measuring the wrong thing.

Let me tell you what I mean.

Let’s go back to this picture from January 2009.

Do you remember that day? I know my New Yorkers will.

The Miracle On The Hudson

Soon after a US Airways flight took off from LaGuardia, it hit a bunch of Canadian geese, which disabled both engines, and forced it to make an emergency landing on the Hudson River.

It was called The Miracle on the Hudson because not every commercial pilot has the skills to pull it off. Fortunately for the 155 passengers on board, Captain Sully Sullenberger was not an ordinary pilot. In fact, he was uniquely qualified to handle this exact situation:

• Over 40 yrs of flying experience
• Flew fighter jets in the Air Force
• Investigated air disasters
• Mastered glider flying (i.e. flying with no engine)
• Studied the psychology of how cockpit crews behave in a crisis

Additionally, and perhaps in part to his military background, Sully was able to remain calm and collaborate with his co-pilot. In other words, he operated as a leader versus a maverick.

Now, do you think any of those 155 passengers, flight team, or hell, the airline itself, cared whether Captain Sully was the most affordable or quickest hire? I’m pretty sure they weren’t steepling their hands and asking what the ROI was on hiring him.

And this is where we’re doing ourselves a disservice as talent professionals.

Our primary recruiting metrics, the ones that get the most fanfare, are Cost Per Hire (CPH) and Time To Hire (TTH).

We’re not ascribing any value to Quality of Hire (QoH). According to a LinkedIn report, only 36% of recruiters measure the quality of hire. Compared to over 50% tracking TTH.

We’re evaluating ourselves on Cost and Speed rather than Precision or Fit. Shouldn’t we prioritize things like performance and retention?

And not just for the cases when you need to land a plan on the Hudson, but for any high-powered role in your organization that depends on a unique skill set.

Measuring Quality of Hire

OK, I see your point but how do you do that?

I came across several articles that set out to quantify QoH. It’s a messy metric because you have to quantify qualitative (say that 3x fast!) measures such as employee performance and contributions. Here are some variables that can be used:

• Performance Metrics: Assess job performance, achievements, and contributions within a specified period (e.g., 6 months or a year).
• Retention Rates: Measure how long a new hire stays, indicating cultural fit and engagement.
• Manager and Peer Feedback: Collect 360-degree feedback on teamwork, collaboration, and overall impact.
• Cultural Fit Assessment: Evaluate alignment with company culture and values for job satisfaction and long-term success.
• Onboarding and Integration Time: Gauge the time for full productivity and integration, with shorter periods signaling quality hires.
• Hiring Manager Satisfaction: Survey managers for satisfaction and feedback on performance and role fit.
• Cost-to-Hire: Calculate total hiring, onboarding, and training costs versus contributions for ROI.
• Candidate Experience: Evaluate candidate hiring experience to attract the right talent and create a positive company impression.
• Post-Hire Surveys: Gather new hire feedback on onboarding, role perception, and alignment with expectations.
• Objective Assessments: Use pre- and post-hire assessments (skills tests, personality assessments) to measure fit and potential for success.

Then you can use a weighted average formula to prioritize the variables that have the most profound impact on employee success. For example:

WQoH = (0.25×Performance Appraisals) + (0.25×Manager Satisfaction) + (0.25×Peer Satisfaction) + (0.25×Retention Rates)

The final result is either a number on a scale or a percentage, so ultimately you can set benchmarks for average and target QoH. Then you can discern what candidate attributes are predictive of a high QoH score and prioritize those in your talent attraction and interviewing processes.

*I relied on a Searchlight white paper for much of my research and you can download their QoH guide here.

Why Quality of Hire Is Important

Studies support the business case for investing in top talent, rather than hiring the first available. For example, a high performer can bring in four times the value to a business compared to an average performer. Conversely, a mishire can cost up to $250,000. Anyone who experienced high turnover after the hiring frenzy of 2021 can attest to expense and effort consumed by mishires.

In addition, focusing on QoH can deliver faster time-to-productivity and drive down first-year attrition.

So, let’s get after it! Determine what a Captain Sully looks like in your organization and focus on setting a high bar for talent. In our next newsletter, we’ll turn the spotlight on hires by Nadexa Group and how they stack up in QoH terms.

Look forward to hearing your thoughts!