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Hiring for success

Measuring quality of hire: how quality of hire metrics boost productivity and retention

The Hiring for Success report (co-published by Hudson RPO and HRO Today) includes six strategies for improving quality of hire. It also defines quality in the workplace, the benefits of measuring quality of hire, the challenges of collecting data, and how to improve hiring processes. The report findings are based on a survey of nearly 300 HR professionals worldwide.

A snapshot of significant report insights include:

  • 85 percent of companies that measure quality of hire believe doing so has a positive impact on hiring quality; nearly half believe there is a significant impact (improvement of more than 25 percent).
  • 62 percent of those who measure quality of hire state that it has a dramatic impact (more than 25 percent improvement) on new hire retention.
  • Of those that do measure quality of hire, the majority do not measure the most effective metrics.
  • Of companies that measure, most do not differentiate between job roles. Executives, managers, sales staff, customer service staff, and others are measured against the same quality of hire metrics.
  • Overall, companies grapple with their HR technology. Only 35 percent of respondents say their HR information systems are working "well" or "fairly well" for them.
  • Worldwide, hiring manager and recruiter skills were nominated as the most important influences on quality of hiring.
  • Surprisingly, less than half of the respondents identified a connection between candidate source and quality of hire.
  • Measurement of candidates’ motivational drives and behavioral capabilities in combination is the most accurate predictor of whether a candidate would be a high performer in a role: 91 percent of hires were rated good or excellent when such formal procedures were used.

How Hudson RPO can help with quality of hire analysis

Need assistance with measuring quality of hire? Hudson RPO offers an array of services to support your quality of hire measurement program:

  • Made-to-measure metrics consulting services
  • Advanced sourcing programs
  • Selection and assessment process design
  • High performer analysis and predictive benchmarking
  • On-boarding program design
  • Employer branding programs
  • HR information system advisory and implementation
  • Hiring manager and recruiter skills: one-to-one or group coaching programs
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