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Quality of Hire and why does it matter?

A very basic question, Is your recruitment team actually hiring the right talent? Quality of hire is the most important KPI for recruiting teams, according to talent acquisition specialists. Companies around the world consider it as their most important priority, according to LinkedIn. According to a recent survey, quality overtook speed as the preferred criterion for assessing recruiting success in the future.

What is Quality of Hire?

Quality of hire is the metric that measures the value new hires bring to the organizations. In other words, Quality of hire is the metric that tells the organization how much value new talents has generated through its performance and experience in the company. 

When you consider how much more productive a firm can be with top performers, you can see the strategic significance of Quality of hire. A top performer generates four times as much production as an ordinary employee, according to research.

To demonstrate your strategic and financial worth, a recruitment department must be able to track the quality of their employees and show how many of their new hires go on to become top performers.

How to measure Quality of Hire?

It is difficult to measure the quality of hire because there is no standardized way. Quality of work or how a person interacts with their coworkers cannot be quantified. The first step is to break down the quality of the hire into quantifiable indicators. Data from current employees can be used to benchmark future hires, allowing you to build a framework for data collection.

Below are some metrics that we can use to measure the Quality of hire-

  1. Retention: It is how long a new hire stays with a company. The longer an employee stays with a company, the more valuable they become. But there are other factors too that can have an impact on the length of a person’s employment such as, poor management, a poisonous work environment, or personal hardships etc.
  2. Productivity: You can measure the productivity of a hiree by looking at the % of goals he/she has achieved in a given time frame.
  3. Ramp-up Time:  This is the amount of time it takes for a new employee to get up to his full potential in their new position at the organization.
  4. Engagement: Is your new employee engaging with the other employees? Is he taking active interest in the company’s events? Are they highly motivated and helpful to others? Are they aligned with the company’s culture and values? These questions can give you an idea about the quality of hire.

How to Improve the Quality of Hire?

Is your quality of hire below the industry standards? Are you not able to hire the right talent? Below are some tips that can be used to improve the Quality of hire for your company.

1. Work closer with Hiring managers in the interview process: It’s likely that the people you’re interviewing have firsthand knowledge of what it takes to fill a vacancy or create a new role. Employees with leadership potential can provide input on candidate profiles or participate in a panel interview with hiring managers.

2. Highlight your culture: Retention, engagement, and performance are all quality of hire indicators that are dependent on new employees having a good cultural fit. It’s no surprise that the majority of current job postings don’t include any mention of a company’s culture. There is room for in-house recruitment teams to steal the show here because most agency recruiters are afraid that rival recruiters will steal their customers or roles.Showcase your company’s culture in job postings to attract better-fitting employees from the start.

3. Change or Enhance your interview technique: You need to know whether or not you’re able to consistently identify high-quality applicants. Is there a difference in the quality of recruiters?

Increase the ability of recruiters to assess the quality of hire in order to increase the quality of hire. You should double-check the validity of your interview questions as well as keep a close eye on the key performance indicators (KPIs) of your recruitment team. If interview training is required, now is the best time to schedule it.

4. Interact with New hires on a daily basis: During the hiring process, your best prospects may have felt like you were their new best friend. Your quick disappearance after they sign their contract is both shocking and deflating.

To avoid forgetting about new recruit check-ins, incorporate them into your workflows. It may seem like a minor detail, but it can have a big impact on a potential employee’s attitude.

5. Analyze the skills gap: It is important to select people who have the right abilities to fit your company’s requirements and long-term goals. You can focus on hiring people who can quickly contribute value and make a difference by identifying any gaps in your workforce’s present skill sets where these objectives aren’t met.

We at Adroit Resources, Inc. are always aligned with our clients requirements and always thrive on providing the quality of hire that our clients require.