Quality of hire is the strategic tool for any organizations and certainly for Talent acquisition departments.
By focusing on quality of hire, a company can actually work to improve their talent acquisition over time, without which they are blind. How can you become better if you can see the results? Moreover, studies show that a 10% increase in the quality of hire can actually save more money and be more beneficial for a company than a 10% increase in sourcing. Despite this evident and relevant research that shows the numerous benefits for considering quality of hire, less than half of all companies consider quality of hire as a key performance indicator.
Checkster organized a round table discussion with several San Francisco Companies including (report here): Agilent, eBay, Facebook, Healthnet, Hitachi, Intuit, Jupiter, Kaiser Permanente, Lawrence Livermore Labs, Logitech, NetApp, Plantronics, Safeway, Sunpower, and Yahoo. These organizations were asked if they measured quality of hire, and, if so, how they measured it.
The companies that looked at quality of hire considered a variety of contributing factors. These factors typically included: attrition rates (for some after a year and, for a few, after six months), performance reviews, hiring management ratings, ...
The discussion that spawned from looking at quality of hire formalities led to a more in depth conversation on ways in which companies can improve the way quality of hire is viewed and used to better the company. To improve quality of hire, the companies discussed ideas such as: improving the job description and success analysis, begin measuring quality of hire for those companies not already doing so, locate the best sources of hire, focus on those jobs that the company considers to be "pivotal", improve the overall interviewing process, increase the quality of the recruiters being used by the company, assessment, selected recruiters, background checks, comparing hiring candidates with the company's values, true reference checks, and previous performance checks.
Thus, we recommend at Checkster measuring the quality of hire, but to avoid its complexities we recommend a simple and easily implemented 360 feedback approach performed no later than 90 days after a hiring is complete. It will give you a quick benchmark and make your organization on top of this strategic metric.