If you are like most entrepreneurial CEOs we know, you are in the trenches, leading and networking your way to find the best and brightest talent. Compounding the challenge, unemployment is at its lowest in several years and any talent can be hard to come by, let alone the “A-player”. At any rate, you have had some luck hiring high-performers from your natural network of friends, family and colleagues and you have come to find that recruitment is way too important to put off or certainly delegate. Finally, when you do find the right talent, you are willing to offer those highly sought after a-players almost anything to come and work for you, such as higher salaries, equity, work from home and lots of promises—whatever it takes.
Fast forward a few months down the road and one of your “A-players” is struggling with job performance or is becoming isolated from the team due to cultural differences. Inevitably, this person leaves or will be terminated. Ironically, another recent hire with a mediocre past performance is now a fast-moving, well-liked, high-performing individual on their way to a promotion. As professionals, we have seen this happen before and every time we are left scratching our heads. We have always followed the belief that past performance is the main predictor of future performance, right? Maybe.
There needs to be a more effective measurement of these scenarios that results in a process to retain high-performers, as well as identify the diamonds in the rough. You need to assess your Quality of Hire.
Today, Quality of Hire is the most elusive term among HR and Recruitment Professionals. If you ask five companies how they determine Quality of Hire, you may just get five different answers. That is because historically Quality of Hire has been based on one, two and maybe all of the following metrics, none which provide a 360 degree perspective of quality:
• Cost per hire
• Time to fill
• General turnover rates
• Individual job performance
• Employee engagement
A more effective model to assess Quality of Hire is using measurements that look at the overall targeted group and not the individual. Predicting and monitoring what a new hire brings to the table for the entire organization takes a lot more insight than measuring areas like cost per hire and time to fill, as well as properly assessing those metrics for both pre-hire and post-hire. Determining Quality of Hire is critical at predicting a new employee’s effect on the long-term success of an organization, but not easy. In order for Quality of Hire to provide the greatest insight, several metrics need to be measured, analyzed and monitored over time. ORS Partners suggests you consider:
• Pre-hire assessments
• Post-hire assessments
• Hiring manager satisfaction
• Candidate satisfaction
• New hire turnover rates
Focusing on these areas allows organizations to see the impact an employee can make on their organization. Pre-hire practices are developed using post-hire analytics. This information is then validated through the expected outcomes during the hiring process, which are proven through actual post-hire performances. With these measured results, recruiters are able to leverage and define ideal candidate profiles and other predictive information that is associated with targeted job types. This defined profile aligns the recruiters, hiring managers, and interviewers, helping them connect with the most ideal candidate and compete for the best and the brightest.
Gaining a mastery in Quality of Hire analytics is not something that happens overnight. It certainly cannot be done without the proper resources, expertise and, most importantly, the right anticipated outcome. Organizations should be realistic about what they hope to gain from the resources they have at their disposal and ask themselves if how they measure Quality of Hire is really giving them the kind of insights it takes to improve not just the recruitment process, but the entire organization.