The Hiring for Success report (co-published by Hudson RPO and the HRO Today Institute) defines quality in the workplace; the benefits of measuring quality of hire; the challenges of collecting data; and how to improve hiring processes. It also includes six strategies for improving quality of hire plus a case study demonstrating the commercial value of committing to a quality of hire program. The report findings are based on a survey of nearly 300 HR professionals worldwide.
A snapshot of significant report insights include:
- 85% of companies that measure quality of hire believe doing so has a positive impact on hiring quality; nearly half believe there is a significant impact (improvement of more than 25%).
- 62% of those who measure quality of hire state that it has a dramatic impact (more than 25% improvement) on new hire retention.
- Of those that do measure quality of hire, the majority do not measure the most effective metrics. Also, more companies need to cross-reference metrics to create a multi-dimensional view. Often one metric does not tell the full story.
- Of companies that measure, most do not differentiate between job roles. Executives, managers, sales staff, customer service staff and others are measured against the same metrics. For the greatest value, companies need to develop specific metrics to fit each job group or family.
- Overall, companies grapple with their HR technology. Only 35% of respondents say their HR information systems are working “well” or “fairly well” for them.
- Worldwide, hiring manager and recruiter skills were nominated as the most important influences on quality of hiring.
- Surprisingly, less than half of the respondents identified a connection between candidate source and quality of hire.
- Measurement of candidates’ motivational drives and behavioral capabilities in combination is the most accurate predictor of whether a candidate would be a high performer in a role: 91% of hires were rated good or excellent when such formal procedures were used