Quality of Hire

Quality of Hire is a comprehensive recruitment metric that measures the real value, performance, and contribution of a new employee during their first year or probationary period.

Formula

(Each factor is rated using the same scale, for example from 1 to 100.)

How to Calculate Quality of Hire

• Choose 3–4 key metrics to assess after the new hire’s first 3 or 6 months (for example: performance review by the manager = 80%, KPI achievement = 90%, onboarding progress = 100%).
• Add the scores and divide the total by the number of metrics: (80 + 90 + 100) / 3 = 90%.
• A recruiter’s overall Quality of Hire is the average score across all of their hires.

Typical Benchmarks

• Target benchmark: >75–80%.
• A score below 60% may indicate systemic issues with the hiring and selection process.

How to Improve Quality of Hire

• Define clear role-specific competencies and use structured interview scorecards.
• Use practical assignments that closely reflect real-world tasks the candidate will handle on the job.
• Assess soft skills and alignment with the company’s values and culture (cultural fit) in depth.

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