Every HR manager understands the importance of hiring great employees. For many businesses, it means a higher rate of turnover if employees are unsatisfactory. There are ways for human resource managers to find the best hires and prevent turnover by using quality-of-hire metrics. These metrics are variables that set one employee apart from another. While no single metric can be applied across all industries, different metrics can be applied for various stages of employment. Here are the different ways human resource managers can use quality-of-hire metrics at their companies today.
What to measure
According to the Society for Human Resource Management, hiring for high-quality candidates is fundamentally different than hiring candidates for the lowest cost. However, metrics such as company enthusiasm often cannot be quantified. According to Inc. magazine, many recruiters complain that they can only measure a quality of hire after seeing their work performance for three to six months. This simply isn't the case. Human resource managers and human resource generalists can measure the quality of their hires using six to eight performance objectives. Skills, behaviors and competencies can be measured in these quantifiable forms as well as team spirit and go-getter attitudes.
How to measure it
When measuring these six to eight performance objectives or skills, behaviors and competencies, use a scale of one through five with one being unsatisfactory and five being the most impressive. These six to eight KPIs can be anything from volume of work produced to satisfaction by managers and teammates. Require each employee to score at least a 20 out of 25 to keep employment after checking in during the first month. Over the course of that month, track their trend of growth or work volume by requiring employees to fill volume logs and meet quotas by the end of a week or month. If a customer has not completed their quotas by the end of the month, they could face termination.
Many other factors can be taken into account when rating the quality-of-hire for a candidate. If scales are an unsatisfactory form of quantifying data at a company, use an equation in a spreadsheet to measure their productivity. It is also possible to use human resources management software to track the quality of your hires. With these tools, every human resource manager will be able to easily measure and keep the most effective talent for an organization.