Everything You Need To Know About Quality-of-Hire

Today we're looking at Quality-of-Hire (QoH): what is it and how can I measure it?

Quality of Hire measures the value your new hires bring to the company and teams and hence, their contribution to your company’s success.

In this article, we’ll answer the most important questions around QoH, like "why is it important?" and "how do I measure it?"  Let’s go!

Why is Quality-of-Hire important?

The dominant KPIs in TA have been very efficiency-centric for the past years. Metrics like Time-to-Hire or Cost-of-Hire have been the top priorities. Today, less than 40% of big companies across the globe actively track and analyze their quality of hire.

But Quality-of-Hire is on the rise. This shift in sentiment signals that more and more talent acquisition teams start paying attention to the outcome of their work, hence building a more sustainable recruiting engine. The value new hires bring to a company has become an increasingly important metric for talent acquisition teams and businesses.

How do I measure Quality-of-Hire?

There are different ways to measure QoH, and it really depends on you to choose which one makes the most sense to your team and business. While metrics like Cost-of-Hire are clear to define, QoH is more vague.

All the same, where there's a will, there's a way! Here are three good ways to measure QoH.

There are three main ways of measuring QoH:

• Hiring manager satisfaction: Your hiring manager is the person who onboards and works with your new hire. They have the best insights on being able to assess how the new hire fits the job and performs in it. Close the feedback loop with them and quantify the output.
• New hire performance: You can use performance metrics of your new hire to determine and quantify the QoH. Such metrics vary from role to role. They could include, for example, quota attainment for sales, customer satisfaction for customer success, or the number of releases for the product team.
• Turnover and retention: More macro-level but still impactful is an analysis of company-wide turnover and employee retention. These metrics give you an indication of where you stand as a company, but keep in mind that they're a result of many different factors and not just QoH.

What do we recommend?

As you might already know, HiPeople we're big believers in continuous feedback loops and data-backed decisions. Therefore we recommend assessing hiring manager satisfaction to measure quality of hire. This has many benefits, including the fastest turnaround time and clear indications on success or failure.

The HiPeople Hiring Intelligence platform offers its own, fully embedded QoH Analytics module, allowing you to measure and analyze your company’s QoH with no effort. Give it a try today!