What is quality in hiring?

Hiring quality is a metric used to evaluate the contribution of a new employee to your company and helps you understand if the results of your recruitment strategy have paid off.

However, quality in hiring can be difficult to measure and evaluate: it is not reflected immediately after hiring and “value” is very subjective. In fact, accurately determining the value of a new employee can take a couple of months considering factors such as:

• New employee performance
• Rotation and retention
• Recruiting Manager Satisfaction Index
• Return from colleagues

Why is hiring quality an important recruitment metric?

Hiring quality assesses the candidate's strengths and value in their new role. Companies spend approximately $4,700 per hire, therefore, finding the best talent for your vacancies is cost-effective since it reduces the chances of rotation (we will expand in the next section). As a result, improving hiring quality has significant benefits for your results and long-term success.

What is the correlation between high hiring quality and low turnover rate?

When hiring quality is high and the turnover rate is low, we're looking at an indicator that your company is a great place to work.

A strong company culture is an excellent way for your company to face events such as Great Renunciation. This is because company culture helps you keep great employees and ensure that They want stay in your company. 30% of workers have left a job in the first 90 days, of which the 34% say the reason was a culture that didn't fit their expectations.

Employee turnover results in low productivity, Low morale, poor brand reputation and more turnover. The cost of replacing an operating worker is approximately $1,500, therefore, a high turnover rate can cost your company thousands of dollars. Keeping turnover low and hiring quality high can help companies control recruitment expenses and have a better plan for the future.

Post-contract metrics to consider for hiring quality

While hiring quality has a certain level of subjectivity, there are some post-contract metrics you can use to determine your company's parameter.

Work performance

Work performance metrics include a variety of employee performance measures that indicate specific ways in which new employees add value, such as reaching the goal of assembling units, achieving a certain amount of sales, or obtaining a specific customer satisfaction index.

There are several ways to measure work performance, including customer feedback through surveys, productivity reports and performance evaluations from time to time. These evaluations usually consist of a series of categories that score different aspects of employee performance on a scale of 1-5. The time interval between evaluations may depend on your industry and company, but 30, 60, 90 days apart are common.

Employee Retention

You can measure employee retention with a simple formula:

Employee Retention Rate= (Number of employees who remained employed during the time of the interval being measured/Number of employees at the beginning of the interval) x 100

While the employee retention rate can indicate whether new employees are a good fit for the company, it can also reveal other issues, such as poor onboarding and training or ineffective management.

Time for productivity

Time for productivity is a key metric for determining onboarding success. This metric refers to the time it takes for an employee to reach 100% of their productivity. The longer you delay, the longer you can expect to pay for a “productivity tax” in the form of a lower labor rate.

This metric is difficult to measure because it is not an exact science and can vary greatly depending on the role. To measure it, companies must define which key performance indicators (KPIs) reflect the ideal productivity for a given position. Then, calculate how many days it takes for your new employee to reach that productivity point for each KPI.

Recruiting Manager Satisfaction

Recruiting managers can see the performance of new employees first-hand. They have an internal view of progress or need for improvement, and even of whether the employee fits the position or not.

Recruiting manager satisfaction surveys are the best ways to get this information. Surveys should ask for feedback on various aspects of the recruitment process, such as new employee performance, recruitment challenges, recruitment performance, and hiring quality.

Employee Commitment

Employee engagement measures how connected workers are to their jobs, teams and company on an emotional and mental level. 92% of the executives agree that companies with highly engaged employees have satisfied customers. This makes this metric particularly important in operational customer service roles.

Employee engagement surveys and pulse surveys are two ways to measure this metric. It is recommended to carry out comprehensive annual surveys. However, periodic pulse surveys (which are shorter) are useful during a new employee's first week, month, or 90 days.

How to measure quality in hiring

All companies have different recruitment priorities and goals, so the factors they use to determine hiring quality vary. For example, a production company may consider that the volume of production is important and a fast food restaurant may focus on the number of orders per hour.

To measure quality in hiring, you have to average your indicators. For example, if your company prioritizes commitment and performance, the formula for calculating quality in hiring would be like this:

Quality of hiring% = (employee commitment% + performance%)/2

How to improve your quality in hiring

While hiring quality is a somewhat elusive metric, there are ways to quantify it in order to improve your recruitment process. Here are some strategies to improve it:

• Use artificial intelligence tools: With automated recruitment platforms, talent attraction teams leverage AI to filter candidate applications with specific criteria. This optimizes the dynamics of your recruitment process and ensures that candidates who pass through the filter have the qualifications you are looking for. It also makes the workload of recruiters lighter, which means that the selection process will be faster.
• Improve your onboarding process: According to research, about 10% of employees have left a job due to a bad experience in the onboarding process. A well-designed onboarding process helps new employees quickly integrate into their new work environment.
• Consider evaluating skills: Using a pre-evaluation can help you define if a candidate has ideal skills or not. Companies can use the results to reduce the pool of candidates so that only the best talent advances in the recruitment process.
• Review results regularly: Quality in hiring is not a metric that is measured once and never again, but companies must monitor it on a regular basis, especially in mass recruitment. Evaluating relevant hiring quality KPIs will help you understand what's working well and what's not so you can adjust your focus as needed.

Improve your hiring quality with Emi

One of the fastest-growing segments in recruitment technology, the AI, has enormous potential to improve the efficiency of recruiters and quality in recruitment in general.

By automating the recruitment process and providing a better candidate experience, our automated recruitment platform can help you reduce hiring time by 50% and double the productivity of your recruitment team, leading to an 88% candidate satisfaction rate.

To learn how to start harnessing the power of AI and to improve your attracting talent, recruitment decisions and hiring quality, request a demo today.

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