Quality of Hire ranked as the most important recruitment metric

According to a recent report published by LinkedIn, the most important recruitment metric is Quality of Hire.

It’s also one of the most difficult to measure – 2 out of 3 respondees in the same report say they don’t measure it.interview

Perhaps this shouldn’t be a great surprise as Quality of Hire is not a simple measure.

What is Quality of Hire?

Quality of Hire is a broad measure covering the two key areas of recruitment quality:

  1. The quality of the candidates being processed and subsequently hired,
  2. The quality of the overall hiring process.

In other words, Quality of Hire describes the quality of the hires made by an organisation and the quality of each recruitment activity.

The first dimension focuses on candidates and new starters. How good is the pipeline of candidates sourced and submitted to hiring manager? How well have new starters performed and been retained?

The second dimension considers how well the hiring process has been performed. Has the hiring process achieved the timings and number of candidates agreed? How do the key stakeholders assess the quality of the hiring process?

Organisations that effectively measure Quality of Hire can drive through real bottom line business improvements through recruiting top performing employees.

We have deconstructed the elements of Quality of Hire above in the diagram below:


Candidate Quality

Pre-Hire Candidate Quality

This is a measure of the strength of the candidate pipeline. It looks at how close the attributes of the candidates sourced and shortlisted are to the hiring requirement. Basic ways of measuring this are numbers of CV’s to interview and the number of candidates suitable for an offer. Talenytics goes a step further and measures the candidate “fit” to a vacancy requirement.

Post-Hire Candidate Quality

This measures the retention and performance of newly hired employees. It looks at how many staff have left the company and why. It also measures the extent to which new employees are achieving objectives and whether their performance is above or below the expectations determined when hired. Basic ways of measuring this are post-hire surveys and manual analysis of appraisal data. Talenytics automatically gathers retention and performance information at 1, 3, 6 and 12 months from line managers.

Process Quality

Stakeholder Feedback

This looks at the level of satisfaction of stakeholders in the hiring process. It considers feedback from Hiring Managers, Candidates and also the Recruiters. Typical factors to measure include the level of communication, the accuracy of the brief versus the requirement, and whether commitments have been met during the hiring process. The core way of gathering stakeholder satisfaction data is via periodic surveys. Talenytics automatically polls stakeholder on completion of a hiring process to gather timely and accurate date.

Process Performance

This measures how well the milestones agreed at the start of a recruitment process between the Hiring Manager and Recruiter have been achieved. Critical milestones that need to be considered are the date of interviews, the date of a successful offer and the start date of the candidate. In addition, there may be targets for the numbers of CV’s shortlisted and the number of candidates interviewed. The normal way of measuring actual performance against targets is manually using spreadsheets. The current generation of ATS does not have the ability for Hiring Managers and Recruiters to set targets. Talenytics allows Hiring Managers and Recruiters to mutually agree on targets and records them at the commencement of each hiring process. It then automatically measures actual performance against these targets.


Quality of Hire is a broad and sophisticated measure that covers both the quality of candidates hired and the quality of the hiring process. Organisations looking to use recruitment as a strategic enabler need to embed quality metrics into their Talent Acquisition functions. However, Quality of Hire can be a challenge to measure efficiently and accurately.

Current recruitment ATS technology does not provide a solution. This is why Talenytics has been designed. It automatically polls, measures and compares targets and results providing the only complete set of quality recruitment metrics.