Recruiting Metrics: How to Measure Quality of Hire

Posted by Chris Daniels on Dec 10, 2015 10:21:00 PM
Chris Daniels
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Only 58 percent of recruiting departments report measuring the quality of their hire, and those who do say that it’s hard to measure until the person has been on the job for at least three-to-six months.

There is a number of skills and qualities (coachability, work ethics, good team player) that candidates demonstrate during the interview process. But what if there was a way to predict that a) these qualities really exist and b) this is what you, as a hiring manager need for the specific position and your company culture.Based on our experience evaluating thousands of candidates, we know that skills and competencies are poor predictors of performance. That’s why we created a step-by step guide that will help you measure the quality of a hire on a much deeper level.

Step 1: State clear job expectations

Give your candidates clearly defined objectives so they have a robust understanding of their future role. Describe an important project, challenge or problem they will need to address during their first year. You can also state a challenge that they will have to solve and let them know what needs to be done in order to solve a problem. Give an example of a comparable accomplishment for each performance objective: 1) figure out the problem and/or audit the process, 2) evaluate alternate solutions and conduct a trade-off analysis, 3) develop a plan of action and get it approved, 4) obtain the resources and build the team, 5) implement the plan and resolve every problem along the way to make sure the project is completed on-time and on budget.

Step 2: Get the examples of their accomplishments

During a performance-based interview, require that candidates provide examples of a similar  accomplishment for each performance objective. Ask to provide ways of how action X helped achieve a 30% increase in product sales in 2015, for example. Additionally, you’ll get a better sense of their problem-solving skills if you present a hypothetical problem and ask the candidate to provide a solution and evaluate their thought process in getting the answer. A performance-based interview is also a great place to evaluate a candidate’s growth potential, including his or her ability to work independently, take the initiative and be self-motivated. It also gives a better window into how the person will fit in with your company’s work culture, and what kind of achiever they are.

Step 3: Sell the position

Does this position offer a career move? A great career move is not only about the money. It’s also about offering at least a 30 percent nonmonetary increase, including job satisfaction, career advancement opportunities, better commute, living in their desired area, etc. During the performance-based interview, find out what’s important to the candidate. If your position can offer the opportunities they are seeking, then state these benefits up front.  

Step 4: Evaluate the Quality of a Hire

Once you stated the performance objectives and conducted the performance-based interview, it’s time to evaluate the quality of the hire. We recommend a simple system of rating candidates on a scale from 1 to 5 (with 5 being the best).

  • Performance results
  • Potential for growth
  • Managerial and culture fit
  • Ability to achieve results
  • Position would be an upward career move

You don’t necessarily have to pick the candidate with the overall highest ranking, but those with at least 20 points will be the best fit for your company.

This is just the tip of the iceberg. The above step-by-step process allows you to measure quality of a hire based solely on the human interaction. Our predictive algorithm reduces margin for human error and eliminates the guesswork out of your hiring decision by utilizing big data.


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Topics: recruiting metrics, quality of a hire

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