"Quality of Hire" — a metric that carries both importance and complexity. It’s a critical tool in evaluating recruitment success, but too often, it feels like navigating a maze without a map. If you’re a recruiter or talent professional, understanding QoH is essential for refining your process and showing measurable results. Let’s break it down into manageable steps, with a touch of playfulness to keep things engaging.
Quality of Hire, or QoH, measures the overall value a new hire brings to your company. It evaluates how well they perform, how long they stay, and how satisfied their manager is with their contributions. It answers the fundamental question: "Did this hire truly add value to the business?"
When tracked consistently, QoH provides key insights into the effectiveness of your recruitment strategies. It’s more than a number — it’s a reflection of your ability to align talent acquisition with organisational goals.
Here’s a tried-and-true formula to get started:
QoH = (Performance + Retention + Hiring Manager Satisfaction) / 3
This formula averages three core components. Let’s unpack them:
Performance: How effectively is the new hire meeting expectations? This could include performance reviews, goal achievements, or any other relevant KPIs. Assign a score out of 10.
Retention: Has the hire remained with the company long enough to make an impact? High retention scores reflect both good hiring decisions and a strong organisational culture.
Hiring Manager Satisfaction: How satisfied is the hiring manager with the new hire’s contributions? This feedback often reflects a combination of skills, attitude, and cultural fit. Again, score it out of 10.
Note: If you have more variables, you can add them and divide them by the number of variables to get an average.
Let’s consider an example to bring this formula to life. Imagine you’ve hired Sarah, a skilled software developer. After six months, their scores might look like this:
Performance: Alex consistently delivers high-quality code and exceeds deadlines. Score: 9/10.
Retention: They are fully integrated into the team and plan to stay long-term. Score: 10/10.
Hiring Manager Satisfaction: The manager appreciates Sarah’s technical expertise and collaborative spirit. Score: 8/10.
Using the formula:
QoH = (9 + 10 + 8) / 3 = 9
Sarah's QoH is 9 out of 10. This indicates a highly successful hire.
Measuring QoH isn’t just about proving recruitment’s value; it’s a powerful tool for continuous improvement. Here’s why it matters:
Improved Hiring Processes: Spot trends and areas for refinement.
Data-Driven Insights: Move beyond gut feelings to measurable outcomes.
Strategic Impact: Align talent acquisition with broader organisational goals.
Moreover, understanding QoH helps mitigate the costs of bad hires, which can ripple across budgets, morale, and productivity.
Quality of Hire is a vital metric for any organisation aiming to optimise recruitment strategies and maximise employee contributions. By consistently tracking performance, retention, and hiring manager satisfaction, you’ll gain actionable insights and demonstrate the strategic value of talent acquisition.
How you measure it depends on the size of company, your business model and which metrics matter for your business. Remember that it’s not about perfection but progress. Measuring QoH ensures you’re on the right path, guiding your efforts toward better hires and stronger teams. So, grab that formula, crunch the numbers, and use QoH to elevate your recruitment game.
Do the numbers show you that you need to make better hires? Let's have a chat!