Quality of of H Hire: Drilling down on the q quality of of your hiring pr practi ctice ces Deb Cohen, PhD., SHRM-SCP April 21, 2017
Summary a and Learn rning Objectives • HR Metrics are critically important for HR professionals to use and understand. • Quality of hire (QoH) can be a subjective metric and one with many differences between employer formulas. • This session will explore the nuances and important issues related to measures and metrics and will drill down on ways you can capture and investigate Quality of Hire (QoH) issues.
Let’s s start rt w with s som ome interesti ting d data a poi oints ts
On average ge, e every c corporate ate job ob op opening a g attracts 250 r cts 250 resu sumes But only 4 to 6 of these people will be called for an interview, and only 1 of those will be offered a job. Source: http://www.inc.com/peter-economy/19-interesting-hiring-statistics-you-should-know.html
79 79 perce cent of of job ob seekers u s use soci ocial al m media a in their j r job ob s search ch This figure increases to 86 percent of younger job seekers who are in the first 10 years of their careers. Source: http://www.inc.com/peter-economy/19-interesting-hiring-statistics-you-should-know.html
Quality of hire and time to hire are still the true nort rth metri rics Source: https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/resources/pdfs/linkedin-global-recruiting-trends-report.pdf
Emplo loyee referrals are e the e top op sou source e of of quality h hires Source: https://business.linkedin.com/content/dam/me/business/en-us/talent-solutions/resources/pdfs/linkedin-global-recruiting-trends-report.pdf
Hi Hiring proc oces ess statistics • It takes an average of 27 days to make a new hire – and this is an all time high. • The best candidates are off the market within 10 days. • The average cost per hire has risen to $4000 . • 60% of employers admit to being concerned with the cost of unfilled positions. Source: http://theundercoverrecruiter.com/change-way-hire/
Recr cruiti ting d diffi ficulty ty has i increased
Hiring f for Q r Quality?
What does this data mean t to y you a and y your r quest for r qua quality hires? • There’s more competition than ever before • quality hires are scooped up quickly • Yet there’s a mountain of data to sort through; candidates can apply more easily with the click of a button • Time to hire and length of stay are more important than ever • The dynamics of hiring are more complex than ever before • There’s still no clear/single definition of QoH
What i is Qu Quality of Hi Hire e (QoH oH)? • Recruiters typically define QoH as a grouping of metrics that measure the degree to which candidates recruited/hired satisfy job requirements • http://www.syntell.com/stock/fra/quality-of-hire_whitepaper.pdf • QoH represents the value new employees bring to the company; this demonstrates how effective the recruitment team is at finding and connecting hiring managers with the right people for each available job. • https://www.jibe.com/ddr/quality-of-hire-everything-you-need-to-know-about-the-metric/ • QoH is a group of meaningful measurements, unique to each company and role, which define success in talent acquisition to fuel the business. • http://www.cielotalent.com/blog/cielos-hr-leader-blog/asian-reflections-on-defining-measuring-and- activating-quality-of-hire/
What’s the “buzz zz” about QoH? • Quality of Hire (QoH) is the latest buzz term – though it’s been discussed as important for more than a decade • QoH has become one of the most important , and at the same time most difficult , metrics to track • The term “quality of hire” has been used loosely without much attention to what it really means • Though there are some, rarely is an equation given
Sample e Qo QoH E Equation on • Overall Quality of Hire (%) = (PR + HP + HR)/N • PR = Average job performance rating of all new hires • HP = % of new hires with acceptable ramp-up time within acceptable time frame • HR = % of new hires retained after one year • Would this equation work for you? Source: https://www.jibe.com/ddr/quality-of-hire-everything-you-need-to-know-about-the-metric/
No m matter th the defi finiti tion….. .. No joke, Quality of Hire IS important and should be tracked.
Five Measurem emen ent C Categor ories es • Quality of hire metrics that focus on measuring the on the job performance of recently hired employees typically fall into one of five categories, including: 1. Individual Performance Metrics 2. Retention Rates 3. Manager Satisfaction 4. Applicant/Employee Satisfaction 5. Cost of Hire • The fifth category, cost of hire, is included as a QoH category because cost is a necessary component when determining value. Cost and quality metrics by themselves tell you nothing of the value derived from a hire, only the expense or performance associated with it. Source: http://www.syntell.com/stock/fra/quality-of-hire_whitepaper.pdf
Measuri ring quality ty of h hire, requires a look at a myriad of metr trics. F . For e example: • Post-hire assessments – Nearly ½ of U.S. companies conduct some type of new hire assessment at 90 days, ¼ conduct assessments at six months and 1/3 conduct assessments at one-year. • Hiring manager satisfaction – Some companies survey hiring managers every 90 days for feedback. The survey is designed to provide leadership with immediate awareness about what is going well and what issues need to be addressed. • Candidate satisfaction – Progressive organizations are distributing surveys to new hires roughly 30 days after they start. The purpose is to benchmark recruiter performance and also ensure candidates are satisfied with the hiring process. • New hire turnover rates – Even during today’s tough economic times, some research shows that roughly one in every eight new hires left the job within the first 12 months. • Not one of these alone , however, can measure quality of hire . Source: http://blog.bersin.com/quality-of-hire-is-a-buzz-buzz-buzzing/
What d do you curr rrently measure? • If you measure QoH – how do you measure it? • If you measure cost-per-hire (CoH) how do you measure it? • Do you measure turnover? If so, how? • What other metrics do you follow? • Why do you follow them?
Measur uring Q ng QoH H Bef efore you ou Hi Hire Some of the simpler methods look at the candidate; They: • Get at least one counter offer • Are currently employed - In low unemployment times, • Have 3 offers from top firms - In high employment times, • Are known by our top performers, • Were hard to convince - the best are in demand and are hard to "sell". • Fit our competency profile – • Are gone quickly - The best are taken rapidly. • Get awards; t op performers are publicly recognized in their firms. Source: http://www.syntell.com/stock/fra/quality-of-hire_whitepaper.pdf
Maintaining Q Quality!
Who tracks what? Source: Hiring for Success by Hudson RPO, 2013
What has impact? Source: Hiring for Success by Hudson RPO, 2013
Different types o of t talent metri rics t to c consider • Speed Metrics • Time to fill, time to accept, time to start, time in workflow, etc. • Quality Metrics • Submittal to acceptance, first year quality, hiring manager satisfaction, etc. • Productivity Metrics • Source of application, source of hire, candidate withdraw reasons, revenue per employee, goal completion, error rates, etc. • Retention Metrics • New hire surveys, New hire retention (new hires that last over a year, between 2-4 years, and > 5 years), Voluntary/involuntary staff attrition • Performance Metrics • Performance reviews, 360 degree feedback, Hiring manager surveys after 3, 6 and 9 months of hire, Average job performance rating of new hires • Cost Metrics • Recruiting resources cost, cost per hire, etc. Sources: https://www.jibe.com/ddr/19-talent-acquisition-metrics-that-should-be-on-your-radar/ Sources: https://www.aquire.com/workforce_analytics_articles/view?article_id=56124
Next xt s steps : Start b by defining wh g what yo you mean b by “ “qua quality” • To help with this process, ask these 5 questions: • What does “quality of hire” mean in your business? How do you define success? This definition varies for each and every company. • What data would indicate QoH in your organization? Cost of bad hire? Turnover rate? Performance data? Rate of promotions? • How do you measure each of these indicators? Can you profile “top performers” and find commonalities? • How important is improving the quality of your hires for the organization? • Are you currently bringing on quality hires? Many companies mistakenly think they are. Survey managers; evaluate the employees’ performance appraisals. Source: http://blog.snelling.com/2013/09/quality-of-hire-metric-what-it-is-what-is-does-how-it-helps/
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