3 Ways to Measure the Quality of a Hire

Many hiring managers will agree that quality of hire measures are crucial to the hiring process. However, there is no one-size-fits-all metric that every company can use when assessing their potential candidates.

Typically, a company will create an ideal candidate profile by determining what makes a great candidate. This candidate profile is built using factors such as cultural fit and necessary hard and soft skills. Using this profile, you can use numerous quality of hire measures to streamline your search process.

In this article, we outline the importance of quality of hire measures and several common methods to consider.

How to Measure the Quality of a Hire

Why Quality of Hire Measures Matter

The quality of hire metric matters because it can determine how much value a candidate brings to your company. The tricky part of this examination is that many methods are subjective.

If this quality metric is subjective, why do many companies still use it? When utilized effectively, the examination information improves hiring processes and results.

A common way that companies use subjective quality of hire metrics is by applying a numerical value to them. According to SHRM, the most popular measure used in 2017 was a performance appraisal score. This numerical score was determined based on the subjective value that a company placed on a candidate’s past job performance.

In the end, there is no standard way to determine these metrics. To choose how to measure the quality of hire, try to find a method that aligns with your search priority.

Method 1: Retention Rates

This quality of hire method looks at a candidate’s rate of retention in past positions. Essentially, how long has a candidate stayed with an employer in the past?

There are multiple factors to keep in mind when using this method. First, you must consider what your ideal candidate’s retention rate looks like. If you’re looking for a candidate to fill a long-term position, they may have a higher retention rate than others.

The second factor to consider is why a candidate leaves a position. You might find a candidate who seems qualified but only spent six months with their last employer. To know if this is a red flag or not, try to determine what motivated the candidate to leave their position. Were they let go? Or, are they seeking further career growth?

Method 2: Past Job Performance

Looking at a candidate’s past performance reviews can give you an idea of how their supervisors perceived their value. Like other quality metrics, performance reviews tend to be subjective to those who write them.

This method is beneficial when paired with another quality of hire measure because it can provide additional background information. An example of this would be pairing this method with a method that examines a candidate’s retention rate.

Method 3: 360-Degree Feedback

A popular method for determining the quality of a candidate is through 360-degree feedback. This method examines multiple sources of information regarding a candidate’s past performance.

Some sources of information include performance reviews, feedback from the candidate’s colleagues, and even customer feedback.

As the name suggests, this method offers multiple points of view regarding how well a candidate performed at a past job. In addition, this method helps you assess a candidate’s cultural fit.