New research proves that Quality of Hire is more relevant than ever, with 90% of business leaders agreeing that delivering quality hires should be the top priority for talent acquisition.
A recent global study from Cielo uncovered differing perspectives between stakeholders on areas such as talent strategies and candidate experience, but showed that when it comes to Quality of Hire, opinions were almost unanimous: it’s crucial.
Anyone who has worked in talent acquisition for a number of years will understand the magnitude of the change it has undergone in recent times. Far from being a back office function seen as a cost source, talent acquisition is now central to a company’s growth, financial and business strategies. The TA function has definitely matured, but with that comes added pressure to analyse and report on performance and plan for development.
Why isn’t Quality of Hire being measured already?
Although it’s often considered the ‘holy grail’ of recruitment metrics, very few companies claim to even attempt measurement, and fewer still claim to be effective in that measurement. A common reason given for being unable to measure Quality of Hire is that TA teams simply don’t know where to start.
Rather being a singular measure, Quality of Hire comprises several different elements, such as performance of new employees, retention, quality of the hiring process, and stakeholder satisfaction. Due to the comprehensive nature of the metric, it can feel overwhelming to hiring teams who want to begin gauging Quality of Hire. 87.5% of talent leaders surveyed also admitted that a lack of reliable and insightful data was a major barrier, and those that did have the data were unsure how to interpret it in relation to Quality of Hire.
The benefits that measuring Quality of Hire could bring
Imagine being able to predict who will be a top-performing employee and who will leave after 6 months? Financially the impact could be huge, not to mention the knock-on effects for morale, retention, company performance and productivity. In fact, by improving quality by just 10 points, a Fortune 500 company could increase its bottom line by between $70 million and $160 million over 3 years.
Improved candidate selection criteria will also come from measuring Quality of Hire, as your team will be able to definitively assess what type of candidate goes on to become a top performer in a specific role. The power of this kind of data can’t be overstated; effectively, you’re then able to practically guarantee quality candidates are the only ones who make it through selection. The best source of hires can be identified and focused on as a result.
One of the most obvious benefits that your hiring team will experience is improved offer acceptance rates and faster hiring; once the right type of candidate has been identified in terms of cultural and commercial fit, current top performers can be surveyed to highlight the most common job acceptance/rejection criteria among them. The process can then be refined to directly appeal to top talent.
How to start measuring Quality of Hire
Establishing what success looks like within a given role as well as from a company-wide perspective provides a starting point for measuring Quality of Hire. As well as increasing the overall visibility and transparency of a new hire’s journey, this will allow for hiring managers and recruiters to align on what the ideal hire looks like. Collaboratively reaching agreement on the perfect candidate might sound challenging in itself, but the creation of a firm baseline is an essential first step.
Once agreement has been reached, the next step will be to define the criteria by which quality will be measured. This will likely be different depending on each company, role, seniority, etc, but the ideal candidate spec can be used to inform these decisions. Assessing which qualities are essential and which can be compromised on will form the basis for quality measurement throughout the organisation, so it’s imperative to spend ample time researching and gaining stakeholder feedback. The perfect candidate requires the perfect process, however. Although difficult to define variables like time and cost of hire, factors such as speedy hiring manager feedback, shortlist submissions, etc. can be outlined in terms of best practice.
Next is finding a way to gather, analyse, report on and store all of this data! Talent leaders agreed that a software dashboard layered on top of this complex data would be the most effective way to collect and interpret the information needed to measure and improve Quality of Hire. Talenytics provides a user-friendly, transparent system which is designed to improve collaboration between hiring managers and recruiters as it measures Quality of Hire.
Start measuring Quality of Hire
Content Marketing Specialist
Gianna is a copywriter with degrees in English and Marketing. She is passionate about the ever-evolving world of technology, and uses her skills to research the latest industry trends and insights.