Quality of hire measures whether the people recruiting brought in actually perform well and stay, typically assessed through early performance ratings, retention at key milestones, and hiring manager satisfaction with the hire.
What it means
Quality of hire exists to balance time-to-hire and cost-per-hire, which can both be optimised in ways that hurt hiring quality - rushing a process or cutting corners on assessment to hit a speed or cost target can produce hires who do not work out.
Where it fits in
Quality of hire is typically assessed using the new hire's first performance appraisal results and their tenure against the staff turnover baseline, connecting recruiting outcomes back to performance management data gathered well after the hire is made.
Key rules
- Measures how well a hire performs and how long they stay.
- Balances against time-to-hire and cost-per-hire, which can be gamed otherwise.
- Assessed using early performance ratings and retention data.
- Connects recruiting outcomes to performance data gathered after the hire.
