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Quality of hire is one of the most important metrics for any recruiting team. However, it can also be one of the most difficult metrics to track.
If you’re looking for some proven ways to track the impact and value of your new hires, consider these three methods. At the end of the day, you should probably use more than one metric to track quality of hire.
Tracking Retention
Tracking retention is relatively straightforward and is an objective way to measure quality. Simply divide the number of employees you have hired that have also quit in 90 days or a year and divide that by the number of employees hired in total in that timeframe.
Every hire who leaves is a waste of time and money for everyone. You may never eliminate turnover, but most every organization has room to improve here.
Analyze Performance
Just because an employee doesn’t quit doesn’t mean they’re actually adding value to the organization either!
That’s why it’s important to also examine the performance of your new hires. Look at the average bonus or raise as a percentage of an employee’s base pay. Alternatively, you can calculate an error rate if your organization tracks these numbers. Another idea is to measure scores in performance reviews.
These metrics may be somewhat more subjective, but they give you a deeper look into not only whether someone sticks around, but how they are performing on the job.
Hiring Manager Satisfaction
Quality of hire isn’t just about how well someone performs on the job – it’s also about how well someone performs in the eyes of their manager.
Recruiters should strive to understand what the hiring manager views as a successful hire and make that a reality as often as they can.
Send hiring managers a survey for each new hire asking them to rate the hire around the 90-day mark. Ask a few different questions. For example, consider asking how satisfied the manager is with the competency of the new hire, as well as how satisfied the manager is with the hire’s overall performance.
While this may be the most subjective metric of all, it’s an important one because hiring managers are some of the biggest stakeholders in the success or failure of recruiting.
If you can demonstrate that hiring managers are highly satisfied with your placements, you can make a great case that your recruiting team is adding tremendous value!
