Quality of hire is more than just the latest buzzword; it’s a key metric indicative of positive business results. In order to effectively measure the quality of hire and understand how it can be improved, it is important for companies to identify exactly what quality of hire is — and what it is not. Many think of it as merely what the hiring manager thinks of the recruiting process, and whether they were pleased with the recruiter’s performance, the quality of candidates presented, etc. and not about how the new hire performs on the job. Others believe quality of hire can be determined by calculating retention of new hires within a period of time (typically between 90 days and one year).
The truth is that the quality of hire is neither. It is the level at which a person new in a role (whether an internal employee promoted to a new position or an external hire) contributes to the business over time. When companies measure the quality of hire in this way, they can identify talent acquisition processes and methods that lead to successful hires. They can, for instance, identify sourcing and selection techniques that are most effective and then invest more in these methods.