Quality of hire is the value a new employee adds to your company and their contribution to long-term business success. Measuring and improving the quality of hire can enhance your recruitment strategy, attract better candidates, and improve overall business performance.
Beyond reducing cost per hire and employee turnover, quality of hire ensures you are bringing in the right people for the right roles. If you frequently experience hires that don’t work out, assessing your hiring success can help refine your selection strategies, resulting in new employees who make a positive impact on your organisation.
How to Measure Quality of Hire:
To improve the quality of hire, start by understanding where your organisation currently stands. The following key performance indicators (KPIs) can help:
Length of Tenure
The longer an employee stays, the more valuable they become. Their accumulated experience within your operations, client relationships, and company culture makes them more effective over time.
Employee tenure can be influenced by voluntary or involuntary departures. If employees frequently leave due to workload, culture misalignment, or unmet job expectations, your recruitment process may need adjustments to ensure candidates receive a clear and realistic picture of your organisation.
Employee Engagement
Tracking employee engagement is complex but critical. Conducting surveys and one-on-one discussions can provide insights into job satisfaction, workplace happiness, and willingness to recommend your company.
Engaged employees deliver better-quality work, stay longer, and positively impact company culture. In contrast, disengaged employees cost businesses more, taking an average of 18 additional sick days annually (source). The UK economy loses approximately £13.4 billion per year due to disengagement and absenteeism (source). Addressing employee concerns, offering work-life balance, and providing career development opportunities can significantly improve engagement levels.
Speed to Competence
How quickly a new hire reaches full productivity is another measure of quality. A slow onboarding process or a misaligned hire can be costly. Employees who adapt quickly and contribute efficiently signal a strong hiring choice.
Hiring Manager Satisfaction
Gathering feedback from hiring managers on new employees' performance, team fit, and competency provides valuable subjective insights into recruitment effectiveness. If hiring managers regularly express concerns, it may indicate areas for improvement in your selection process.
How to Improve Quality of Hire:
Build a Strong Employer Value Proposition (EVP)
Your EVP should clearly communicate why candidates should want to work for your company. Beyond salary and benefits, your EVP should highlight company culture, career progression, values, and business goals.
Being transparent about these factors is crucial. Overpromising during recruitment may lead to early departures if the reality doesn’t match expectations. With platforms like Glassdoor and Indeed providing employee reviews, a misaligned EVP can damage your employer brand.
Reduce Time to Hire
A slow hiring process increases the risk of losing top candidates to competitors. In a candidate-driven market, speed is key. Streamlining your recruitment process ensures you can secure high-quality candidates before they accept another offer.
Optimise Candidate Experience
A seamless recruitment experience improves the likelihood of securing high-quality hires. Complex applications, poor communication, or high-pressure interviews can deter strong candidates. Ensuring a smooth, engaging hiring process will attract and retain top talent.
Candidate experience also impacts unsuccessful applicants. Word-of-mouth and online reviews can significantly influence your reputation, affecting future recruitment efforts. Even if your organisation has faced challenges, demonstrating accountability and ongoing improvements builds trust.
Ensure Employee Satisfaction
Hiring the right people is just the beginning—retaining them is equally important. Happy employees are more engaged, productive, and likely to refer quality candidates to your company.
Regular anonymous employee surveys provide insights into culture, workload, training, and career progression. Addressing employee feedback demonstrates that your organisation listens and values its workforce, fostering trust and commitment.
How Can We Help?
If your recruitment efforts aren’t bringing in the right talent, it could be costing your business through unplanned training, lost productivity, and decreased morale.
the team at Greenbean are experts in measuring and improving the quality of hire. We can help you identify problem areas and implement strategies to enhance employee satisfaction and long-term business success.
Get in touch today to discuss how we can support your hiring strategy.
