It can take a while for employees to get up to speed and start
meeting expectations, so think about the appropriate amount of time
before beginning to calculate quality of hire—likely after at least
How to apply quality of hire scores
Again, this metric is tricky because it’s subjective: The
connections between recruiter actions and employee performance
aren’t linear. This makes it harder to set concrete goals for
improving quality of hire like you would for other metrics. Instead
of viewing it as a performance barometer, use it as a signpost to
help improve your hiring process going forward in a number of ways.
Isolate predictive factors
Quality of hire is a measure of how recruiting and hiring actions
affected hire quality. By using the metric to identify very
successful past hires, you can look back in the hiring process and
try to isolate recruiting factors that would help predict good
quality hires. For example, you might find that many of your most
successful project managers have backgrounds in a similar industry
or possess more on-the-job experience than formal training. You
could also refer back to your interview
evaluation form for the candidate, to see how they scored. Keep
these factors in mind as you screen new candidates and pick out the
ones with the best potential.
On the other hand, you can also use quality of hire to identify
red-flag characteristics of poor hires. A study by Mark Murphy found
that 46% of hires
fail in the first 18 months. Anything you can do to earmark
potential red flags early might help decrease that number.
Cross-reference with other metrics
No metric exists in a void. When paired with other recruiting
metrics, quality of hire can provide many new insights.
Calculate quality of hire as it relates to different recruitment
sources as a way to evaluate recruiting-source
quality. For example, you may find that your employees scoring
highest on the quality scale came from employee referrals or a
campus recruiting event. Consider allocating more resources towards
sources that lead to high-quality employees.
You can also look for correlations between time to hire and quality of
hire. Does a longer candidate-selection process lead to
higher-quality hires? Or does it have the opposite effect—taking too
long to make a decision causes high-quality candidates to abandon
the process and accept offers elsewhere.
Encourage investment by leadership
Hiring better performers has a direct impact on
increasing revenue, even if those employees aren’t directly in
revenue-generating positions. At the same time, replacing employees
who are performing poorly costs not just time and money, but also
hurts the company with lost productivity and morale.
Use quality of hire measurements to illustrate how recruiting
efforts affect both the quality of employees and the company’s
bottom line. This is a powerful argument for investing in hiring
programs and resources as a means of company growth and development.