Worldwide, HR Leaders not Measuring Quality of Hire vs. Impact on Bottom Line
The new benchmarking report, Hiring for Success: Improving Organizational Performance Through Better Quality Recruitment, from Hudson RPO and the HRO Today Institute, is providing an insightful look into how global human resource leaders are measuring the quality of hires and how those hiring practices are impacting their organization’s bottom line. Commenting on the results of the survey, Hudson RPO Global Leaders Kimberley Hubble said:
“All hiring managers know that there are considerable differences in productivity between average performers and high performers, which means quality of hire is imperative for businesses. Yet our study shows that 69% of respondents are not measuring quality of hire at all. We wanted to understand why this is and what companies can do to seize this untapped opportunity to improve their productivity.”
Several key findings from the survey include:
• 85 percent of companies worldwide that do measure quality of hire feel that it has a positive impact on hiring quality with 50 percent believing it has a significant impact.
• Most companies that measure quality of hire do not track or cross-reference the best metrics for a multi-dimensional view.
• Most companies that measure quality of hire do not differentiate between job roles. More effective strategies involve developing specific metrics for each family of jobs.
• 35 percent of respondents reported HR information systems working “well” or “fairly well” in supporting hiring-quality measurements.
• A minority of respondents identified a connection between source and quality of hire.
“With some reports finding the cost of turnover ranging from 20 % to as much as 200% of an employee’s annual salary, the benefit of quality of hire programs on new hire retention alone should make HR leaders take notice,” said Elizabeth Boudrie, Executive Director of the HRO Today Institute.