Quality of hire metrics improve recruiting

8 Sep

Recruit more effective candidates with quality of hire metrics.

As a human resources manager, you need to consistently optimize your hiring processes. Otherwise, you could end up hiring the wrong people. While you may not make any disastrous hires, you might not hire the best possible person for the job – the person who will bring the most positive change. Quality of hire guidelines ensures that you leave no stone unturned in the search for the right fit in your company.

What is quality of hire?
Quality of hire is a calculation based on a number of data points regarding a candidate's performance. It is also a process that attempts to align predicted and actual quality measures, according to LinkedIn. When companies get the formula right, they can replicate the results more effectively in their hiring processes. For instance, when they start to notice most of their best applicants come from a specific source, they could put more effort into recruiting from there. If the company hires people with certain experiences who perform well, they should seek similar attributes in their next candidate. Overall, quality of hire looks at performance over all other attributes. While writing skills, for example, are valuable, they can be hard to quantify. On the other hand, hard experience on a corporate communications team demonstrates a candidate has equivalent experience for the role. 

Here are some tips to put together a quality of hire process:

Define key performance indicators
Many companies measure only tenure for quality of hire without regard to performance. Tenure will likely be a part of the criteria, but companies should also measure performance-based metrics, such as revenue generated, independently of tenure. It's important that hiring managers, HR and other stakeholders sit down to establish KPIs across the business. These need to be written down and used to influence the entire hiring process. 

Have quantifiable performance metrics
As ERE Media pointed out, performance metrics need to be objective rather than subjective, which means they need to be based in numbers. Using data makes the results easier to replicate. In addition, less concrete metrics, such as leadership skills, may not be applied fairly throughout the organization and may negatively impact certain groups. HR should be present when establishing KPIs to make sure nothing slips in that could be considered discriminatory.

Define these metrics for each job
The company-wide hiring KPIs need to be specific to unique positions. Companies have a range of job roles, and hiring managers can't have the same expectations for all of them. Talk to current staff members in various roles to develop a sense of what accomplishment looks like for specific positions.

Change job posts to reflect performance goals
To fully integrate quality of hire procedures into the hiring process, you need to update job posts to reflect performance rather than specific skills or attributes, LinkedIn wrote. Instead, use job posts to include the projects you expect the new hire to accomplish. Companies can determine a good hire based on which candidates have done something similar in the past.

Continue to evolve
Like any process involving data, determining the best metrics to define quality of hire is an ongoing process. According to Recruiting Trends, organizations should continuously revise and improve how quality of hire is measured. The KPIs that determined success in the past may not always be the same in the future.

Get employee management software
It is difficult to maintain all the information about employees you will need to successfully implement quality of hire procedures. Without the right software tools, it may be impossible to collect and maintain the appropriate candidate data required.

Quality of hire will always be vital for companies. Do you have the right processes in place to make it work?

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