Recruiting 101: What Is Quality of Hire?

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What is quality of hire?

What is quality of hire?

Quality of hire is a metric representing the value new employees bring to an organization. Its function is to validate current hiring practices and illuminate better ones. The ultimate aim is to establish a predictable model for recruiting and selecting the organization’s ideal job candidates.

According to LinkedIn’s Global Recruiting Trends 2016 (PDF), 39 percent of talent leaders – the plurality – agree that quality of hire is the most valuable recruitment metric.

How do you measure quality of hire?

Good question. It’s one that many organizations struggle with. There is no true best practice or industry standard because value is perceived differently by different people.

Common ways of tracking quality of hire include:

  • Feedback, such as new hire evaluations, hiring manager satisfaction, and performance reviews
  • Retention, such as turnover statistics and employee tenure
  • Career trajectory, such as promotions
  • Engagement, such as employee engagement surveys and culture fit scores

A quality of hire score can be calculated by averaging the indicators being tracked, for example:

Quality of Hire (%) = [Job Performance (out of 100) + Retention Rate (out of 100) + Employee Engagement Score (out of 100)] / Number of Indicators (in this case, 3)

Which, in practice, might look like:

75% = [75 + 70 + 80] / 3

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