What is key when it comes to Quality of Hire?

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In what was a super busy week last week, I was able to attended one day of the Australian Talent Conference and was looking forward to hearing our CEO, Kimberley Hubble talk about a recent piece of research that HudsonRPO commissioned on Quality of Hire across Asia Pacific.  I’ll be sharing a bit more of this down the track but thought I would share just a few of the key points that came out of that research as well as the presentation.  If you follow me on Twitter, then you may have seen me tweeting the interesting findings.

Is quality of hire important?


The first statistic that caught my attention was that 93% of companies classified quality of hire as one of the most important focus areas, yet less than a 1/3 of them actually measured it.   As Kimberley stated, what other part of the organisation would you spend millions of dollars in and not actually measure the return or effectiveness of what you’ve spent that money on.

There was also a really active discussion in the room and a number of delegates noted the fact that if you measure quality of hire too early then you may not be able to get a true sense of what the value is that the new employee has been able to contribute, but if you leave it too late, then there are too many other external factors that impact the quality of hire measurement.

How are organisations currently measuring Quality of Hire?


Three metrics that some organisations track included Retention of new hires (84%), Hiring Manager feedback (74%) and Employee performance rating (63%).

David from Commonwealth Bank mentioned that they found that the quality of hire from their corporate website was better than the quality of applicants or hires from other channels.  Therefore doing some analysis based on source of hire was a good starting point to see which channels were providing a higher calibre of employee.  Unfortunately there was no discussion as to why this might be the case.

The discussion also focused on which roles should be assessed, therefore starting smaller and more targeted.  For large organisations trying to assess every role and quality of hire may no be a realistic expectation, therefore pick your roles, customise your measures, check data sources, get the organisations buy in and insure ongoing measurement.


What has the greatest impact of Quality of Hire?

As expected (I think), the Selection Process was the number one factor as having the greatest impact of quality of hire.   Within the process sit a number of key areas that need to right.

Equal second in regards to impact of quality of hire was the the Skill of the Recruiter and the Skill of the Hiring Manager.

Ensuring that your recruiters are trained up to find the best people as well as assess correctly is imperative to putting the right people in front of the hiring manager.

What were the 7 steps identified when looking to improve quality of Hire?

1) Create a compelling business case

2) Identify & understand business critical roles

3) Determine the most relevant metrics

4) Collect & analyse the data

5) Report findings & recommendation

6) Take action to drive changes

7) Review annually

As I mentioned this is just a high level overview of some of the findings and once it’s released further I’ll share more with you over time, focusing in on the ‘how to’ aspects.  Stay tuned and we’ll delve deeper over the coming months around some of these key topics!   If you have any questions or would like further information then leave a comment below or drop me an email at suzanne.chadwick@hudson.com

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