Quality of Hire: A Holistic Approach to Long-Term Hiring
Picture a talent acquisition team that’s smashing every deadline. Roles get filled fast, requisitions close on schedule, time to fill looks great on the dashboard. Then six months later, several of those hires quietly aren’t working out, and nobody flagged it early, because the only thing anyone was tracking was how fast the seat got filled. I question any organisation that is fully focused on time to fill, or KPIs or numbers. Obviously requisitions have to be filled; I get that, but if that’s all you’re focused on, you’re going to lose people anyway. I also question any outsourced organisation, us included, or any recruitment agency, that’s just filling roles for the sake of filling roles. We’re not understanding what the purpose is. Finding the right candidate, finding the right fit, that’s the point. So why does time to hire get tracked so religiously while quality of hire almost never does? I think it comes down to visibility. Time to fill, speed of hire, is an internal thing. The market’s not exposed to it. Candidates don’t care. Other organisations don’t have any visibility on what those KPIs are internally. It matters to leadership, it matters to heads of talent acquisition, because they’re seeing that as an efficient process, and there’s a cost to a role not being filled. So from a leadership and finance perspective, that looks good on paper. But the quality of hire that comes out into the market. That’s your reputation. Candidates who leave an organisation might say something about their previous employer, and that trickles out. Key takeaway: Quality of hire is a measure of whether a new employee delivers real, lasting value through performance, cultural fit, and retention, rather than simply how quickly the seat got filled. Time to hire is an internal efficiency metric. Quality of hire is what the market actually sees. What Does Quality of Hire Mean? Quality of hire is a measure of whether a new employee delivers real, lasting value through performance, cultural fit, and retention, rather than simply how fast the role was filled. Unlike time to hire, which tracks internal process speed, quality of hire reflects outcomes the market and candidates actually experience. Quality of hire, for me, starts with alignment. Is the person in the right environment in terms of culture and values, does it genuinely align with them, and does it confirm what you saw in the interview process? That’s the definition I come back to once someone’s had a positive experience getting onboarded and ramped up. Ask most talent acquisition teams to define quality of hire, though, and you’ll get a range of answers. If it’s culturally aligned and the values align, that new hire will probably start making a difference in the organisation within their first three to six months. It’s not just about being transactional, showing up each day. A salesperson doing fifty calls a day and going home satisfied isn’t the same as a salesperson actually making a difference. One’s just activity, the other’s impact. That’s the distinction worth noting. Time to hire and cost per hire measure the process. Quality of hire measures the outcome, and it’s historically been the hardest of the three to pin down. It’s fluid, because it really depends on the role. Quality of hire for a sales organisation means how much revenue someone brings in, and how quickly. Whereas for a back-office or operational role, the results might not bear fruit until the following year. But you can see the groundwork they’re laying, and they’re communicative about it. Take someone in marketing leading a rebrand. You don’t really know how good that rebrand is until it’s launched and you see how the market actually responds to it, sometimes six months down the track. But you can still see the value in the groundwork they’re doing along the way, even before the result is in. Key Quality of Hire Metrics: The Formula and How to Calculate It Ninety-day retention comes up constantly as an early signal, and I back it, but with a condition attached. What’s important in those first three months is you’ve actually got to look after the new joiner. Some people throw a candidate in the deep end, or rely too much on process, too systematic. But the leader and the team surrounding that new individual just have to care about that person. Whatever that cadence is- regular one-on-ones early, less as they get more independent, but a regular check on how they’re doing, and knowing they can come to you with questions. Once you get to that ninety-day mark, that person should feel like they’ve been looked after, and that’s also a reflection on the organisation, not just being left to do your job. Ninety days cuts both ways. It’s also long enough to know if something’s genuinely wrong, whether that’s cultural, performance-based, or you just got it wrong. This is the bit most teams skip. Everyone talks about quality of hire like it’s a feeling you get, and to be fair, a lot of it is, but if you want to actually track it and compare it over time, you need a number, not just a gut sense. There’s no single formula everyone agrees on, because it really depends on what your organisation is set up to measure. Most credible versions land on the same two foundations: Crosschq’s benchmarking, for instance, runs on performance and retention. Here’s the version I’d point a team towards: a weighted average of a few post-hire indicators, each scored out of 100: Quality of Hire = (Performance Score + Retention Score + Hiring Manager Satisfaction Score + Time-to-Productivity Score) ÷ number of indicators used Performance score – their rating at the first formal review, turned into a percentage. A 4.4 out of 5 becomes 88. Retention score – 100 if they’re still there at the 12-month mark, less if they’ve already gone. Hiring manager satisfaction – just ask the hiring manager how satisfied they are with the
