Common quality-of-hire metrics include turnover rates, job performance, employee engagement and cultural fit measured by 360 ratings. Referrals grow as a key source of quality hires, because referred employees have a longer tenure and higher job performance. As a result, more leaders consider employee referrals to be an essential trend. Hiring for high-quality candidates is fundamentally different than hiring candidates for the lowest cost. Measurements such as time-to-fill and cost-per-hire are based on the speed and cost of the recruiting process and will not reveal the impact that hiring decisions have on a company’s ability to realize its business goals.
Metrics for Pre-Hire Quality
- Candidates per hire
- Passive candidate conversion rate
- Referrals per call
- Email conversion rates
- Passive candidate call back rate
- Job posting effectiveness
Companies often link performance reviews or general performance to a particular hire to measure the quality of that hire. If a company is trying to measure quality of hire, new hires are typically gauged on whether and how fast they attain certain productivity levels, on sales and revenue delivered. Experts agree that to effectively measure quality of hire, metrics must be calculated both pre- and post-hire. To calculate pre-hire quality, companies use measures of candidate quality, new-hire attrition, candidate assessment scores and time-to-fill.
Metrics for Post-Hire Quality
- 360 Degree Feedback
- Culture-fit surveys
- Hiring manager surveys on new hire performance
- Revenue per employee
It was believed that recruiters who make the most high-quality hires obtain the most high-quality referrals. Figuring out when the employee became fully productive, how he or she ranks among peers, and whether or not he or she is a cultural fit are all good determinants of whether you made a good hire.
Here are a few other metrics to consider:
- Ramp up time: How long did it take for the new hire to get up to speed? Was it quick or longer than average?
- Job performance: Measured by performance ratings or objective data, depending on the industry or position.
- Engagement/cultural fit: Did the employee feel happy and engaged in the position and did he or she fit in with the overall culture?