Hiring glossary
What is quality of hire?
Quality of hire is a recruiting metric for how much value new employees add to the organisation, usually judged by their performance, retention and the hiring manager’s rating after a set period.
There is no single standard formula. Most teams combine a few measures they already collect, such as first-year performance ratings, whether the person is still employed after a year, time to full productivity and hiring-manager satisfaction, then compare the results across hiring sources or process changes.
It is the metric that says whether hiring works, where time to hire and cost per hire say whether it is fast and cheap. Because it takes months to read, record each hire’s assessment and interview scores at the time, so you can later check which stages predicted good performance.
Example
A year after each hire, a team records the performance rating (out of 5), whether the person is still employed, and the hiring manager’s rating of the hire (out of 5). It then compares hires who came through a work-sample stage with those who did not.
Related terms
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