Question:Why is Quality of Hire what every recruiter and hiring manager is talking about?
Answer: Because Quality of Hire can help turn workforces into powerhouses of performance.
Quality of Hire has become the priority for recruitment professionals in every industry. Understanding why Quality of Hire is so important can help you make better hiring decisions. It’s time to discover the multiple reasons behind the recruitment industry’s obsession with this all-important metric.
What IS Quality of Hire
At its core, Quality of Hire is a measurement of how valuable an employee is to your organization. Quality of hire is usually expressed as a score or percentage. Your employee’s Quality of Hire scores can be tracked over time to measure improvement, and compared against each other to identify high and low-performing employees.
By looking at the scores of existing employees, you can build profiles that correlate with high performers who have good Quality of Hire scores, and begin predicting how candidates in your hiring funnel might perform. You can use Crosschq’s Quality of Hire Scorecard to accurately measure your employees’ scores.
5 Reasons Why Quality of Hire Is SO Important
Quality of hire can have a significant impact on business outcomes. Here are five reasons why Quality of Hire is critical if you want your organization to thrive:
#1: Increased Productivity
Quality of Hire is measured based in large part on performance and engagement. Employees who are high-performers can deliver up to 400x as much productivity as employees who perform poorly, indulge in presenteeism, or are unengaged and unmotivated.
#2: Improved Retention
Quality of Hire also depends heavily on whether or not the employee is a good fit for the job values and company culture. Employees who feel like they fit with their team are more likely to stay with an organization long-term than those who don’t put in an effort to build interpersonal professional relationships.
#3: Reduced Costs
Quality of Hire leading to improved retention reduces direct recruitment costs by limiting employee turnover and eliminating the need to constantly refill empty seats. Hiring high-performing talent also reduces the costs related to losses in productivity associated with low performance.
#4: Enhanced Morale
When half of your employees are high performing and the rest are low performing, bringing in yet another mediocre employee drags down morale. Your top talent knows they are carrying the bulk of the load, and maybe resentful or even decide to quit. Recruiting for Quality of Hire is one of the best things you can do to help create a positive company culture.
#5: Maximized Revenues
According to one report, just a 10% increase in employee productivity could result in up to a 100% increase in pre-tax income. Making hiring decisions based on Quality of Hire can improve your company’s bottom line.