Why does it matter?
It’s no secret that finding the right candidate for your open position can be a difficult and time consuming. Matching skills, education and cultural fit are rarely easy but on top of these must haves, what also needs to be taken into consideration during the hiring process is quality of hire.
90% of business unit leaders said that delivering quality hires consistently should be the top priority for their internal recruitment team. Unfortunately, only 55% rated their performance as effective. It may just seem like another step to take in the process, and it is, but here’s why quality of hire should matter to you:
Quality of Hire boosts competitive advantage in the job market
According to the U.S. Department of Labor, we’re currently working in a job seeker driven market. The current unemployment rate is trending downward as it was 4.9% in January of this year, down from 5% the previous month. So to compete for top talent organizations are pulling out all the stops.
Measuring quality of hire gives organizations an advantage by improving the hiring process so recruiters know which factors to look for in potential candidates and will then be able to build up that candidate’s confidence in order to avoid the possibility of them dropping out halfway through the process.
Quality of Hire reduces turnover
Bringing on a new hire means lots of money and time invested in onboarding, training and getting them acclimated with the organization and team. To watch a new hire leave after all that investment can be a little heartbreaking and pretty disappointing if you thought they were the one throughout the hiring process.
It’s predicted that every time you must replace a salaried employee, it costs 6 to 9 months’ salary on average. So for a manager that may be making $40,000 a year, it could cost $20,000 to $30,000 in recruiting and training expenses to replace them. By using the quality of hire metrics and pinpointing the basics that make up a good hire such as competency levels, former manager approval, current employment, etc. organizations are better able to assess whether or not their new hire will stay for the long run.
By measuring quality of hire, you are able to evaluate the on-the-job performance of new hires and essentially the output they contribute to the organization. Using this quality of hire strategy to improve your current hiring process will give you the ability to bring on new employees that are able to perform better than the last as your process improves. These improvements will then lead to boosts in productivity from the team overall.
And who doesn’t love a boost in team productivity?!
Not only will your organization reap the benefits of a more productive team, reduced turnover rates, and a competitive advantage in the talent market but you will also be able to find out what is and isn’t working in your current hiring process. Whether it be where you’re sourcing candidates or your recruiting strategy, measuring quality of hire will help you pinpoint problem areas and emphasize strengths. So, what are you waiting for?
Feel like you have quality of hire down but not so much when it comes to onboarding? Make your new hire’s first day the best ever. Register for a free demo today!