The metric everyone is talking about is Quality of Hire. If your organization isn’t recruiting with Quality of Hire as a priority, you’re missing out on chances to land great candidates and could be hiring less-than-stellar employees who bring your whole business down.
Unfortunately, many employers don’t understand what Quality of Hire is much less how to measure it. It’s a complete mystery - one that it’s high time everyone is able to unlock.
Quality of Hire: the Basics
Understanding what Quality of Hire represents is easy. Simply put, it’s the value an employee brings to an organization in regard to business outcomes.
Good Quality of Hire means positive business outcomes, typically accompanied by greater innovation and increased revenues.
Bad Quality of Hire can lead to financial costs as well as loss of productivity, lowered morale, and damage to the company reputation.
The exact parameters used to define Quality of Hire may vary slightly from organization to organization, but the bottom line is that if the more an employee helps drive an organization towards its goals, the better their overall Quality of Hire will be.
Measuring Quality of Hire is a lot harder than defining it. The key is to identify key metrics that impact Quality of Hire, and then set up a scoring system that allows each metric to be ranked on a similar scale.
The score can be compared against that of other employees’, and also compared back to the same worker’s score at different points in time.
Although 58% of respondents to one survey said they don’t even look at Quality of Hire until an employee’s 90-day mark, starting as soon as an applicant hits the recruitment funnel is critical. Proactive, predictive pre-hire assessment and estimation of a candidate's Quality of Hire can yield valuable data when matched against post-hire analysis.
Tracking Quality of Hire over a new hire’s first year can help you identify which employees are meeting expectations and which are falling short, and provide opportunities to redirect, retrain, or release an employee.
When Quality of Hire is used in this matter, employee performance and productivity improves. Great employees can be rewarded, good employees can be guided to greatness, and bad hires can simply be let go to be replaced with a better fit.
Research shows that high-performing employees can achieve up to 400 times the productivity of low-performing employees. Isn’t that reason enough on its own to pursue better Quality of Hire? Now that you have the tools to unlock the power of Quality of Hire, there’s no reason not to start leveraging this metric in every hiring and firing decision you make.
Crosschq Analytics is designed to help you measure Quality of Hire across your organization, helping you quantify the value of your employees. It pulls data that speaks to Quality of Hire without bias, helping you build a clear picture of your employees’ strengths and weaknesses.
Crosschq has also developed a useful Quality of Hire Scorecard to help you obtain an accurate snapshot of how any hire is doing at any point in time. Simply plug in each ranking, and use the formula to arrive at a Quality of Hire score.
You can then create a spreadsheet and track every long-term employee and new hire’s Quality of Hire scores over time, creating a clearer picture of what their real value to the company is, and how you can leverage it for even greater results.