Measuring quality of hire might be your ticket to better recruitment

by Cameron Edmond04 Jun 2013

Getting the recruitment process right is a no-brainer when it comes to ensuring success, but if it is so obvious, why do so many HR practitioners  still get it wrong? The answer might lie in your recruitment review.

Hudson RPO’s recent report , Hiring for Success found that 97% of organisations understand quality of hire is important, but only 32% measure it. This avoidance boils down to logistics. “I think the industry has been very focused on metrics to do with costs to hire [and] speed of hiring,” Kimberly Hubble, global leader for Hudson RPO, said.

Hubble stated that quality of hire is difficult to gauge, compared to speed and cost which are simple to measure. This more complex factor requires more resources, which aren’t always available.

Despite the challenges, the benefits of measuring quality of hire outweigh them. Hudson RPO found that 85% of organisations who measure quality of hire see their recruitment improve. Quality of hire improves once it is measured and acted upon.

Businesses seeking to measure quality of hire need to make a few decisions to ensure resources aren’t wasted. Hubble explained the need to target specific roles. “Each organisation needs to ask themselves ‘what are the roles that are most business critical?’” she said. Aiming at positions that have the most to do with generating revenue is a start, but this will differ between organisations.

The next step is defining which measures to track. Hudson’s data found that the three most commonly examined measures were retention of new hires, manager feedback, and employee performance appraisal. “There are other measures that should be used,” Hubble stated. “Retention is important but it only tells us part of the picture. For example, we can retain low performers.”

The measures to be tracked also vary between businesses. Hubble indicated that sales-focused organisations would be better off looking at financially-geared measurements, whereas organisations with well-trained managers may find appraisals useful.

Aside from these measurements, Hudson RPO suggested that an interview after the probationary period should also be conducted. “The onboarding process is critical and doing that interview at the end gives a real indication,” Hubble explained, adding that interviewing the employee can uncover what elements of the recruitment process kept them on board, and what needs improvement. “That information can help improve the way we recruit and help the way we sell the organisation to employees,” she said.


  • by Badri Ravi 11/06/2013 8:57:13 PM

    Good point, given that HR is now moving into board room, its becoming imperative HR takes greater emperically driven decisions and guides business in talent acquisition.

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