Quality of Hire
Composite score measuring the performance, engagement, and retention of new hires within their first 12 months
What is Quality of Hire?
Quality of hire is a score showing how well new hires perform and stay, combining performance, engagement and retention. It shows the real value that recruitment brings.
It is one of the hardest but most important recruitment measures, because a fast, cheap hire who does not succeed is not a good hire.
How this KPI is measured
- Function
- Human Resources
- Sub-function
- Talent Acquisition
- Industry
- All Industries
- Type
- Lagging
- Impact
- Quality
- Unit
- score (0–100)
- Measurement frequency
- Annual
- Formula
- Average of (performance score + engagement score + % still employed at 12 months) / 3
How to calculate it
Take the average of the performance score, the engagement score and the percentage still employed at 12 months.
For example, with a performance score of 80, an engagement score of 75 and 85% retained, the quality of hire is (80 + 75 + 85) / 3 = 80.
Choose the components that suit your organisation, use the same method each time, and measure hires after a fixed period, such as 12 months.
Where it is used
Judging recruitment success
Look beyond speed and cost.
Comparing sources
Find channels that bring the best people.
Improving selection
Learn what predicts success.
How to improve it
Tips and common mistakes
- It takes time to measure. Be patient.
- Do not use it in isolation from cost and speed.
- Ensure performance ratings are reliable.
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