What Does Measuring Quality of Hire Say About Your Recruiting Maturity?
Every line is the perfect length if you don’t measure it. The same can be said for new employees if you don’t measure the way they were hired, and the way they perform in their new role. Recruiters know by now the value of measuring their work, and the performance of the new employees they source. But there are added benefits to collecting and analyzing useful data, as it drives recruiting maturity, and opens up a number of new opportunities for improvement.
One important data point recruiters use to assess their level of talent acquisition maturity is quality of hire. By measuring the value of new employees, and showing how well the recruitment team sourced these workers, quality of hire can paint a thorough picture of a company’s talent acquisition strategy. In a recent report, Empower Hiring Managers And Recruiters Today To Own Recruiting Tomorrow, Aberdeen Group research analyst Zach Lahey demonstrated the power of quality of hire in relation to other aspects of recruitment.
Aberdeen’s Best-in-Class companies that utilized quality of hire saw a majority of employees with exceptional performance reviews. In addition, they had a mean 15% year-over-year improvement in hiring manager satisfaction. These organizations are likely to be much further along the path to talent acquisition maturity than their peers. In this post we’ll examine how measuring quality of hire can lead to other gains within an organization.
Data: Out of the Companies that Measure Quality of Hire…
54% provide key stakeholders with a view of the development progress of new employees in the onboarding process
This means they are 2.7 times more likely to share this data than their less mature peers. Measuring quality of hire is more than just finding the right person for the job–it also focuses on employee performance after they begin working. Companies that accurately measure quality of hire also evaluate their onboarding process, and ensure that the development of new employees makes sense for the company.
Quality of hire and onboarding should go hand in hand at any organization. Tracking employees as they proceed through the onboarding process lets their managers and recruiters see how they are acclimating to their role and the company, and can flag any candidate issues that might be harder to address later on. Plus, by monitoring onboarding and providing feedback to key stakeholders, companies can identify gaps in the onboarding process that might otherwise have gone unnoticed.
43% can tie the source of a candidate to their performance as an employee
The source of quality employees has become more crucial than ever, as recruiters can choose from an ever-expanding list of places in which to advertise open jobs. The proliferation of job boards, the rise of social recruiting, and the increasing preference for mobile career sites, means new employees can come from anywhere.
By measuring the quality of new employees in tandem with the source of those employees, companies can help their recruitment team identify the most successful sources of talent. Many talent acquisition leaders are finding that traditional job boards are not as effective as previously thought, and are placing a bigger emphasis on search and social recruiting. Quality of hire data can help inform these decisions and lead to better allocation of resources.
Improve the Variables that go into Quality of Hire
Quality of hire is made up of many variables, and its measurement will most likley be unique to every company. But most will include job performance, productivity, ramp-up time, engagement, cultural fit, and job tenure. Keeping an eye on each variable in the equation is crucial not just to measuring quality of hire, but using its results to drive talent acquisition maturity.
HR leaders that can review the ramp-up time of new employees, for example, can help managers identify strengths and weaknesses of the onboarding process. Feedback on the cultural fit of new workers can help shape the wording of future job postings. It may even be advisable to reverse engineer your quality of hire metrics. Determining what type of quality you want to achieve with each new hire can help guide recruitment strategies and refine the variables in your quality of hire calculations.
Aberdeen also found that the companies within the Best-in-Class category were 2.4 times more likely than their peers to fully understand how they measure quality of hire. It’s not enough to collect data and claim to understand it–recruiters must be able to articulate what it is they’re measuring, and how they use that data. Quality of hire results provide ongoing data that, when analyzed in tandem with related employee metrics, can allow HR leaders to continuously improve their recruitment strategies and develop a more mature talent acquisition model.
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