Quality of hire is one of the key recruiting metrics. It can show whether your new employees can bring fresh skills, perks, and innovative approaches to the team. Or the way the official QoH definition suggests – whether they’ll offer more value.
So, how to track it? How are hiring metrics measured, and why is this one absolutely necessary to boost your business? Here’s a hint: it will take a while, but it’s not that complicated. Just copy this step-by-step guide & start building your way toward successful hiring and better retention rates.
What is quality of hire (definition + must-know facts)
Attracting and welcoming more qualified candidates is one of the ultimate aims for each business. So, naturally, the idea is to keep those professionals and turn them into loyal teammates and brand ambassadors. There are several effective tactics to do so. And in the meantime, it’s crucial to track and measure results, assess strategies, and adjust them every now and then.
Quality of hire (QoH) measures the value a newly hired employee brings to the team. Since “value” is a term that’s been used quite loosely, it’s best to specify its basic meaning. So, here, it refers to the contribution new hires give and the ways they boost their company’s long-term success. One of the key elements is linked to the way they complete tasks, how productive they are, and whether they add to a firm’s overall improvement.
Why is quality of hire important?
So what exactly can an improved quality of hire do for your business and hiring processes? Well, let’s walk you through some of the most beneficial after effects:
- Employee retention will unquestionably increase. This sort of perk is something you’ll definitely look forward to, and it is bound to happen because making better hiring decisions (ones that are based on actual data & metrics) will echo for a long time.
- Job satisfaction followed by a rise in productivity is another direct by-product of smart, data-driven recruiting tactics. Since it’s much easier to find someone who’s just the perfect fit for a specific role when tracking down all relevant recruitment analytics, these amazing results are certain.
- All costs will decrease, especially those related to employee turnover. New hires that were properly introduced to their roles and responsibilities are far more likely to stick around and grow their careers within the company.
Feeling up for measuring and boosting your quality of hire yet? Just in case you need another key point that will knock your socks off – think about employee engagement. This vital aspect can represent a massive step toward becoming an employer of choice. Because, you know the drill – happy, motivated employees are, in fact, what has to be your top priority.
How to track your metrics: Quality of hire formula
Global recruitment trends study shows that QoH is one of the most significant analytics to track. So, get ready to learn more about it and measure it to create more efficient and successful recruiting plans. Now, there is no single equation to get your score in a snap. However, you can track a variety of factors that will lead you toward an answer and offer a few solutions. You can use this formula to assess your quality of hire metrics:
QoH = factor 1% + … + factor N% / N
So, in more simple terms, you should choose a few factors or indicators that show how your newly hired employees are doing. Then, use this formula to produce the average of a number of indicators. For instance, take efficiency, newly acquired skills, and the way the hires fit into the team. Then, divide the score by three since that’s the number of key indications you took into account.
Best ways to keep track of these metrics
Since there are quite a few ingredients that can make or break your QoH score, it’s best to bet the bottom dollar on more than a single equation. In fact, that’s a piece of great news! Because that way you can try more than one recipe and be completely sure regarding the results you’ve got. So here are a few steps that you should take:
- Use performance reviews. According to studies, 50% of companies measure their QoH by relying on these reviews. Still, keep in mind that these indicators aren’t always accurate. How so? Some managers and team leaders are simply a bit more difficult to please than others. So it’s best to add an extra way of ranking to get more objective results.
- Track retention. Once again, studies show that nearly one-half of businesses mind this crucial metric when assessing their QoH. And it makes perfect sense because the longer an employee stays in a company, the more value they can add.
- Keep an eye on the hiring manager’s satisfaction. The best way to grab hold of these valuable insights is through surveys. More than 40% of businesses collect data this way and add that information to their calculations.
There are more ways to use questionnaires, scales, and surveys to estimate QoH. For example, you can use 360 surveys to ask peers and team members about the new hire’s performance and the way they fit into the brand-new environment. Employee engagement checkups come in handy in every single scenario, particularly when your team welcomes a new member. Be sure to ask the recently hired person to rank their impressions, motivation, and accomplishments as well.
Bonus tip: Make sure to keep an eye on pre-hire metrics
By now, you have no single doubt about the tremendous importance of estimating post-hire quality metrics. But since it’s essential to measure your results in the long term, QoH has another crucial element. It’s pre-hire quality.
These checks and estimates are usually short-term. They’re used to show the anticipated quality of hire. And they represent the base of a successful interview process and highlight everything companies do to choose the best candidates. Or, in more simple terms, these metrics combined allow you to get the full picture.
So, when it comes to this segment, you should focus on both qualitative and quantitative measurements. The first category is what candidate persona would fall under. It also covers some questions like whether your candidates have counter offers, if they’ve been looking for a new job for a while now, or how long did it take to draw their attention to your firm.
Quantitative analytics is a bit less about words and hunches and more about actual math. For instance, it’s imperative to track the time to hire. That way, you’ll spot which parts of your hiring process truly need a little brush-up. Also, keep an eye on scores on tests and passive candidate conversion rates.
Boost your strategy in 5 easy steps: Learn how to improve quality of hire
Improved QoH can’t be based on a single aspect of your hiring process, nor can it advance due to an isolated outburst of progress. On the contrary, it will take some time and a few extra efforts to get all things in order. However, before making headway toward a bright future, it’s imperative to focus on the present day. So start by measuring your current achievement and then set up the building blocks that will bring lasting results.
Measure your current results
Learning about your current score and understanding it is an excellent place to start if you’re looking for the right way to enhance your processes and get better results. After you find out where you’re standing with the QoH at this point, you can easily set clear goals for refinement. Think about where you’d like to be in six months, a year, or five years from now. Then, make a plan that will help you keep track of all your activities and outcomes.
Collect the right data & base your decisions accordingly
Tracking pre-hire and post-hire metrics is the best way to move toward boosting the QoH in your company. By collecting the relevant data and using it to make smart hiring decisions, you can touch up all those key points and sections that will impact your (improved) quality of hire score. In fact, relying on advanced analytics can offer many new opportunities for recruiters to upgrade their hiring processes. For instance, you can give your sourcing channel effectiveness a once-over by gathering results from each source you use to attract active and passive job seekers. That way, you can quickly decide where to look once you’re in the clear about where your most skilled applicants are coming from.
Have a precise overview of the role
Improved QoH can’t be achieved in an instant. Or can it? Some points needed for enhanced results take time. But some are quite quick to achieve. A precise hiring need and a clear overview of the job and the company will undoubtedly move up your hiring efforts. By creating engaging job ads and realistic, detailed job descriptions, you’ll have a higher chance of presenting roles to candidates who are a true fit for the team. So start by assessing your strengths and gaps and make a full list of necessary hard skills and soft skills.
Involve the team & pay attention to culture
Involving the team you’re hiring for is always a good idea. So, be sure to let them take charge of some parts of the hiring process whenever possible. It is best to let them communicate with the candidates and help hiring managers estimate whether they’re the right match for the company. This will help your firm stay entirely objective throughout all hiring steps. And it will keep recruiters and team members on the same page, as well as their managers.
Pro tip: Employee referrals are the most effective way to find and hire the right people. Because, first of all, your staff members know the company and understand all day-to-day tasks, routines, and necessities. Also, they’re deeply familiar with all the core values, mission and vision, and everything a company truly stands for. Lastly, they usually have a complete insight into the current skills gaps. Engage them and boost their experience while refining your recruitment strategy and improving your QoH score.
Set up the most efficient onboarding process
First impressions tend to stick around for quite a while and, sometimes, define the whole journey (retention rates and company’s reputation included). So, having a top-notch sourcing process and developing a brilliant campaign for your job ads is necessary. And so is creating a super-effective onboarding process. Because according to research, nearly 70% of new hires will stay for at least three years if they are welcomed and onboarded properly. So, remember: the first 90 days after a brand-new employee has arrived are always decisive. The ultimate formula for success is to be ready and proactive before this period even begins. Reach out before the official start date and commence to build strong relationships and positive experiences.
Remember: measuring & improving the quality of hire in recruitment is the key!
Improved quality of hire should always make it to the top of the list of your priorities and hiring goals. Granted, calculating and enhancing it is not always simple as ABC. But it will be worth your while, and each extra effort will pay off. So follow the basic steps we mentioned and make sure to mind all those factors that match your unique business needs and aims. That way, you’ll boost your processes and build a strong, skilled, and successful team in the long run.