Measuring Quality of Hire - The Ultimate Recruiting Metric

EXECUTIVE OVERVIEW

This white paper discusses the often controversial HR metric known as “Quality of Hire,” sometimes referred to as QoH. In recent years a debate has erupted over what existing QoH metrics actually measure, staffing process effectiveness or actual new hire quality. Like many HR metrics, it seems that every firm defines quality in its own unique way, and that the measures that are used to track it are equally unique. Further complicating the measure is the fact that various factions within an organization perceive the quality of a hire from different perspectives, and therefore want different aspects of new hire quality measured. Line managers what a unique scoring type measure for each candidate that serves as an accurate indicator of the performance level he or she can expect from the new hire at a predefined future point in time. Staffing organizations often want a measure that aggregates the on the job performance information for new hires into a quality index, that serves as an indication of how well the staffing system is doing at producing hires. The clear difference in these two measures is that one focuses on predicting the future, while the other measures historical performance. Both types of measures have value, but designing a methodology that’s right for your organization requires understanding what your customers expect, and what you can realistically deliver on a sustainable basis.

WHY YOU SHOULD READ THIS
Regardless of what industry or industries your firm participates in, chances are your senior leadership is paying more attention than ever before to the impact talent has on productivity. The increased scrutiny this visibility brings to the staffing function requires that staffing professionals and managers alike be able to demonstrate that they relied on sound data when making decisions about talent. As growth around the world continues to create demand for skilled labor that exceeds supply survival will come down to maximizing the value of every talent management activity from recruitment to retention. This white paper introduces many of the concepts and elements that participants in measuring the quality of hire will have to understand in designed a measurement methodology appropriate for their organization. It is intended to serve as a primer, not a mandate.