Quality of Hire
Quality of hire is a measure of how much a new employee contributes to the organisation, usually combining their performance, their ramp-up speed, their retention and the satisfaction of their manager.
Definition
Quality of hire tries to answer a simple question: was this a good hire? Unlike speed or cost, it can only be judged after the person has started. Companies usually combine several signals: performance ratings after a few months, how fast the person becomes productive, whether they are still in the company after the first year, and what the hiring manager thinks.
There is no universal formula. A common approach is to choose three or four indicators, score each one on the same scale and average them, then compare the result by recruitment source, by interviewer or by selection method. The indicators must be agreed with managers before you start, and they have to fit the role: a salesperson and an accountant are not assessed on the same results.
Quality of hire matters because it is the real objective of recruitment. A fast, cheap process that brings in people who leave or underperform is a failure. Pitfalls include judging too early, relying on a single subjective opinion and having too few hires to draw conclusions. Use it to improve your process, not to blame individuals.
Key points
- It is judged after the hire starts, on performance, ramp-up, retention and manager satisfaction.
- There is no single formula: pick a few indicators, and apply them the same way every time.
- Agree on the indicators with hiring managers before the recruitment starts.
- Compare by source, by role or by selection method to find what works.
- Combine it with time to hire and cost per hire for a balanced view.
Example
A company with 40 hires in a year scores each one after six months on three criteria: manager rating, achievement of the first objectives and still being in post. By comparing sources, it notices that people hired through referrals score higher on average than those from a job board, and it adjusts where it spends its sourcing effort.
Frequently asked questions
How do you measure quality of hire?
Choose a few indicators, such as performance rating, time to reach full productivity, retention after a set period and manager satisfaction. Score them on the same scale a few months after the start and average them.
When should quality of hire be measured?
Not too early. Many teams look after the probation period and again after six or twelve months, once the person has had time to show how they work and adapt to the role.
Can a structured interview improve quality of hire?
It can help. Asking every candidate the same job-related questions and scoring the answers with the same criteria makes the evaluation more consistent, which gives better chances of identifying people who will perform well.
Related terms
AI conversations, human decisions
Passisto holds structured voice conversations with candidates, employees, clients and students, and turns them into reports your team can act on.