{"id":2660,"date":"2010-03-22T11:49:00","date_gmt":"2010-03-22T11:49:00","guid":{"rendered":"https:\/\/www.bcjobs.ca\/hr-advice\/how-to-measure-the-quality-of-hire\/"},"modified":"2024-12-09T04:34:04","modified_gmt":"2024-12-09T12:34:04","slug":"how-to-measure-the-quality-of-hire","status":"publish","type":"post","link":"https:\/\/www.bcjobs.ca\/blog\/how-to-measure-the-quality-of-hire\/","title":{"rendered":"How to Measure the Quality of Hire"},"content":{"rendered":"

Helen Luketic, CHRP<\/p>\n

\"How_to_Measure_the_Quality_of_Hire\"Good or bad economy, the need to make a quality hire doesn\u2019t change.\u00a0 Given that the Cost of Voluntary Turnover<\/span><\/a> for 2009 was approximately $56,000 for the private sector and over $80,000 for the public sector, hiring decisions cannot be taken lightly as the wrong decision can impact the bottom-line.<\/p>\n

How can you assess whether or not your organization makes \u201cquality\u201d hires?\u00a0 There are simple metrics you can start collecting. Once you start tracking these basic four metrics, you can drill down further to identify the success stories or true issues.<\/p>\n

Let\u2019s start at the very beginning<\/strong>
\nThere seems to be constant angst over how HR can truly measure the quality of a hire as there are so many factors that can influence the hiring decision.\u00a0 Then there is the debate of who is responsible for the quality of hire \u2013 HR or the hiring manager.\u00a0 It\u2019s ultimately HR\u2019s responsibility to set the hiring manager up for success, and advise them using their influence and expertise.\u00a0 Further, it\u2019s HR\u2019s responsibility to monitor its human capital and advise the organization on the best course of action, based on sound data.<\/p>\n

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Now that we\u2019ve established that HR is responsible for quality-control, let\u2019s start measuring quality. There are several ways to do this but the most efficient and informative way is to measure the Resignation Rate and Involuntary Turnover<\/span> Rate.<\/p>\n

Buyer\u2019s remorse<\/strong>
\nThe goal of an effective hiring process is to hire someone who is productive and adds to the bottom line.\u00a0 During the recruitment process, the organization is selling itself to a candidate and a candidate is selling itself as the best choice for a hire.\u00a0 Should either side misrepresent, someone could end up with buyer\u2019s remorse.<\/p>\n

First, let\u2019s focus on the organization as the \u201cbuyer\u201d.\u00a0 The hiring decision is an investment for the organization.\u00a0 For this investment to be made, the expectation is that the new hire will be fully productive anywhere from 90 days to a year from the date of hire, depending on the job level.\u00a0 What happens when the hire doesn\u2019t perform at the minimum level within a reasonable timeline?\u00a0 The assumption is that non-performing hires will be involuntarily terminated by the 90 day or 1 year mark.\u00a0 Therefore, an organization should assess their buying decision and their decision making process with:\u00a0 90 Day Involuntary Turnover<\/span><\/a> Rate and 1st Year Involuntary Turnover<\/span> Rate.<\/p>\n

Next, when a new accepts a job offer, they are the \u201cbuyer\u201d.\u00a0 To attract the best candidates, organizations create a brand for themselves to sell their product:\u00a0 their culture, team and job.\u00a0 If there is a mismatch between the job that was sold and what was ultimately offered, the new hire may have buyer\u2019s remorse.\u00a0 If the new hire was sold a bill of goods and the organization didn\u2019t deliver, chances are they will leave. (miedemaproduce.com<\/a> \u00a0 For the most part, new hires will leave anywhere within 90 days (if it\u2019s easy for them to jump ship and find a job elsewhere), all the way up to a year.\u00a0 Therefore, an organization should assess their recruitment process with the metrics:\u00a0 90 Day Voluntary Turnover<\/span> Rate, 1st Year Resignation Rate.<\/p>\n

These metrics will alert you to a problem if there is one but you haven\u2019t yet pinpointed the core issues.\u00a0 From here, dig further into the information around you to identify the problem.<\/p>\n

The next steps<\/strong>
\nHow do you know if you truly have a \u201cproblem\u201d or if what the numbers aren\u2019t worth sweating over?
\nTrack these four key metrics figures at least quarterly to identify patterns.\u00a0 Is the rate of resignations steadily increasing over time?\u00a0 This may be a good time to look at external benchmarks and assess what is \u201cnormal\u201d for your industry or sector.\u00a0 A little tip:\u00a0 In 2009, the 1st year Resignation Rate for the public sector was 24 per cent higher than the private sector:<\/p>\n

\"How<\/p>\n

If you think there may be hiring quality issues, dig for information on why the hire didn\u2019t work out.\u00a0 What are the patterns?\u00a0 Are you seeing the involuntary turnover<\/span> or resignations:<\/p>\n