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Quality of Hire: What Goes Wrong

Madeline Laurano June 3, 2020

Quality of hire is not a new challenge for companies. It is something that has challenged talent acquisition leaders for the past two decades. Companies do not have a standard for identifying and measuring quality of hire and yet, 68% of companies state that it continues to be the greatest obstacle to talent acquisition (Aptitude Research). What has changed is that the responsibility has shifted from hiring managers to HR and talent acquisition leaders. Over 80% of organizations believe that quality of hire is a recruitment metric rather than a hiring manager metric. As a result, talent acquisition leaders are being held accountable for what happens beyond when a candidate accepts an offer. 

Companies that improve quality of hire were:

  • 5X more likely to see an improvement in first-year retention
  • 4X more likely to see an improvement in first-year performance 

So, what are some of the biggest challenges with improving quality of hire?

  • Companies use hiring manager satisfaction as the only measure: Hiring manager satisfaction is not measured consistently throughout the organization while first year retention and organizational fit are often not measured at all. 
  • Hiring managers don’t have access to data: In reality 67% of talent acquisition and HR professionals are not providing hiring managers with the right data to made decisions and only 32% of senior leaders are confident in the data that they have available to make decisions. When asked what type of information they receive to better inform decisions, hiring managers are relying on resumes more than any other source.
  • Companies don’t know how to define quality: Organizations will not be able to understand or improve quality of hire until they define what it means for their organization. Currently, only 26% of companies have a formal methodology for defining quality of hire. Most companies use an outdated definition of quality of hire or they define it differently throughout the organization

What can Recruiting Enablement help?

Recruiting Enablement, as a practice, provides a standard for companies to define, measure, and track quality of hire. It automates workflows to lift the administrative burden placed on talent acquisition, allowing recruiters to focus on more strategic endeavors. Recruiting Enablement technology also uses AI and machine learning to rank candidates on better decision criteria such as soft skills, potential, and the likelihood of offer acceptance. It helps companies:

  • Define quality by creating a standard for what elements should be included in quality.
  • Measure quality by collecting data in a consistent way throughout the talent acquisition process to better inform decisions.
  • Improve quality of hire by providing tools to automate the administrative tasks of talent acquisition and allow recruiting and hiring teams to make data-driven decisions focused on quality.

Organizations need data to help define and measure quality of hire. Recruiting Enablement provides consistency and helps companies create the standard for improving this critical metric.

Download the research paper.

About the author: For the past 12 years, Aptitude Research founder Madeline Laurano’s primary focus has been talent acquisition. Her work helps companies both validate and reevaluate their strategies and understand the role technology can play in driving business outcomes. Madeline has held research roles at Aberdeen, Bersin by Deloitte, ERE Media, and Brandon Hall Group. She is a frequent presenter at industry conferences.

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