Recruiting professionals and job boards are constantly looking for ways to quantify their work so that others can understand their effectiveness. The best way to measure effectiveness is to create a metric, and the metric that has shot to the top of everyone’s list is the quality of hire metric. Recruiters and job boards have finally found a way to measure how effective they are, and this metric is standing tall above the speed to hire a candidate, hiring costs, and every other metric that has been used.
RELATED: Why Big Data is a Recruiter’s New Best Friend
Measuring Quality Of Hire
According to Jibe.com, quality of hire is measured by adding job performance, engagement, ramp-up time and cultural fit together and dividing it by the number of indicators used to get a percentage. Turning this metric into a percentage makes it easier for people outside the recruiting world to understand, and that is one of the things that makes this a very powerful metric.
Why Is It So Important?
The quality of hire indicates whether or not you made a good choice for your company and for your bottom line. A high quality of hire percentage means that the candidate is less likely to leave the company due to cultural issues or interactions with other employees. It also indicates whether or not the new employee will be productive or not, and how much time the employee will need in training to get up to speed on their new job.
The Financial Aspects Of Quality Of Hire
A quality hire will increase the amount of revenue generated, and reduce losses associated with turnover. A quality hire will keep training costs down, and a high-quality hire will be less likely to cause friction with existing employees that could result in the loss of key personnel. The reason that quality of hire is such an important metric is that it measures the long and short-term financial impact of a new hire, and that is something that companies want to know.
Hiring Managers Can Be More Accurate
According to TheUndercoverRecruiter.com, the quality of hire metric can improve hiring manager morale and help hiring managers to be more accurate in their recruiting practices. It cuts down on time lost to recruiting activities, and it allows hiring managers to be more productive overall.
The increase in the use of big data in the recruiting and hiring process has allowed hiring managers to be more accurate in their hiring, and it has helped job boards to provide better data to its customers. The quality of hire metric is a new indicator that is helping recruiters to become more proficient at matching candidates with companies and job openings. The money that this new metric is saving companies, and the amount of work it is saving recruiters, are two reasons why this metric is so important to companies around the world.
Should more companies utilize the quality of hire metric in order to increase their ROI on new hires?
George N Root III is a professional freelance writer who has expertise in topics such as Internet marketing, business, advertising, and personal finance.