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March 20, 2024

Why You Should Be Measuring Quality of Hire

What is Quality of Hire?

Quality of Hire is a measure that quantifies the impact of a new employee on an organization. It assesses the extent to which employees align with a company’s values, goals, and objectives, and their ability to delivery value and contribute to long-term organizational success. Quality of Hire was the #1 Talent Acquisition metric most prioritized for improvement in 2023.

The Business Case for Measuring Quality of Hire

• Gain a Competitive Advantage – High-quality hires perform better, exhibit creativity and agility, and contribute to organizational goals. A successful hire can outperform an average hire by 400%

• Reduce Hiring Costs – The average cost to replace an employee is 6-9 months of their annual salary. Bad hires cost companies recruiting investments, lost productivity, and wasted training expenses.

• Improve Retention – Quality hires are a good fit to their roles and the organization, making them more likely to stay long-term. Companies that enhance Quality of Hire are 3x more likely to see improved first-year retention.

How Assessing Quality of Hire Empowers Talent Acquisition Teams

• Evaluate the Effectiveness of Recruitment Efforts – Measuring Quality of Hire can help TA teams assess the success of their hiring efforts and demonstrate return on investment (ROI) by highlighting the positive impact of high-quality hires.

• Ensure TA Strategies are Aligned with Organizational Goals – Assessing Quality of Hire enables TA teams to quantify the extent to which new hires contribute to organizational strategic objectives and possess the skills and potential that is required for long-term success.

• Optimize Resource Allocation to Successful Tactics – By understanding which recruitment strategies and channels yield the highest quality hires, TA teams can focus their time, effort, and budget on those areas that deliver the highest ROI.

• Make Informed Candidate Selection Choices – TA teams can utilize Quality of Hire metrics to assess the efficiency of hiring processes, enabling improvements to be made in sourcing, screening, and selection techniques.

Learn the 7 steps for measuring Quality of Hire.

Access 7 Steps