Quality of Hire


Quality of Hire is a key performance indicator (KPI) that is used to determine the overall effectiveness of a hiring and sourcing process. In effect, Quality of Hire is a metric that indicates the success and performance of a recently hired candidate in the context of the associated efforts to hire that same candidate.

Because "Quality" is a non-numerical concept by definition, measuring Quality of Hire requires defining numerical representations of employee performance such as:

Competency Model Match Score
Job performance score Ramp-up time score Engagement score Cultural fit score

These scores are then averaged over the highest possible outcome for the given combination. With this, talent teams and hiring managers can reflect on gaps in their interview and hiring process to find even better candidates in the future.

In a sense, Quality of Hire is indicating how well did the candidate perform what they were hired to do? This metric is driven by two factors the company can control:

Quality of the job description: Did you accurately portray what the candidate would be doing? Were the required experience expectations in your job description correct? Strength of recruiting efforts: Were you able to find candidates who matched the description on a consistent basis? Did you access the right audiences in your search?

Create an iterative feedback loop between the job description creation process and the candidate conversations to bring in the highest quality candidates possible. Quality of hire is a subjective evaluation and should be the sum of the new hire’s first annual performance review.