Quality of Hire

Quality of hire is a hiring metric that measures the value an employee adds to a company and the impact the employee may have on the organization’s long-term success. The quality of hire metric is used primarily to measure the performance of recruiters and hiring managers, along with the effectiveness of the organization’s hiring process. 

The quality of hire metric is determined by first identifying the factors that define an organization’s needs and values. Other metrics complement and can be used to measure quality of hire, including: 

• Retention
• Employee engagement
• Time-to-productivity
• Job performance
• Management abilities
• Cultural fit

Continuous measurement of quality of hire gives leadership and the hiring team the data they need to restructure the recruiting process and make changes as needed. This hiring metric also helps management stay on top of the health of the company’s employee base. 

Quality of hire is used to measure a company’s Success Ratio. The Success Ratio equals the number of high-performing candidates divided by the total number of people who were hired. A high success ratio is indicative of a solid recruiting and hiring process. 

Example: 

The quality of hire metric can be used to measure a recruiter or hiring manager’s effectiveness, and managers can analyze the data as part of a recruiter’s performance review. While performance reviews are highly subjective, using metrics such as quality of hire will help organizations identify weaknesses in the process or the selector. 

In addition to measuring new hires and hiring managers, the quality of hire metric can also be used to measure the effectiveness of specific recruiting practices. For example, suppose an HR department wants to know how well resume screening software finds qualified candidates compared to manual screening methods. Analysts can compare the quality of hire scores of employees hired using manual resume screening with those hired using automated resume screening.