Recruitment is about more than just filling positions — it's about finding the candidates who have the skills and qualities to drive your organization forward and reach business goals. This is where quality of hire comes into play.
But what does this term really mean, and how can recruiters and HR professionals measure it effectively? In this article, we’ll explore the definition of quality of hire, key metrics, and its importance in today’s recruitment landscape.
What is ‘quality of hire’?
Quality of hire is a recruitment metric used to evaluate the value a new hire brings to an organization. It measures how well a candidate is suited to their role, team, and the company as a whole. Unlike recruiting metrics that focus on effectiveness or cost of the process, quality of hire prioritizes outcomes, such as employee performance, engagement, and retention.
By focusing on quality of hire, companies can move beyond short-term objectives and embrace a more strategic perspective on recruitment. Having quality of hire as a top priority ensures that new hires not only meet the immediate needs of the role but also align with the company’s long-term objectives and contribute to a thriving workplace culture. This approach helps businesses secure top talent, reduce turnover and achieve sustainable growth in today’s competitive job market. During hiring slowdowns or market instability, focusing on quality over quantity becomes even more critical.
If measured correctly, quality of hire should not only validate your hiring process, but also close the loop by feeding data back into the hiring process on which behaviors and skills are effectively being evaluating, and where your process is falling short.”
- Arsaman Bahrami, Head of People & Commercial Operations, Precisely
Quality of hire metrics & KPIs
While defining the term is seemingly straightforward, measuring it is another thing altogether. Although up to 89% of talent acquisition professionals think quality of hire will increasingly become important to measure, only 25% feel confident that their organization is able to effectively do so.
To measure quality of hire, organisations often rely on a combination of metrics and KPIs. These may include employee performance, retention rates, cultural fit, and time to productivity.
Here are some examples of metrics that can be used to assess quality of hire:
- Retention rates: Measures the proportion of employees who remain employed over a period of time.
- Cultural fit: How well the new hire aligns with the company’s values and culture.
- Employee performance: Feedback from the manager or team on the new hire’s overall contribution and how well they meet or exceed their goals.
- Time to productivity: The time it takes a new hire to become fully productive in their role.
- Hiring manager satisfaction: How pleased hiring managers are with the recruitment process and the new hires' contribution.
The specific metrics will depend on how each organization defines “quality,” which can vary widely. Many, if not all of these metrics are subjective and should be used in tandem to create a more complete picture of determining quality of hire. However, to make quality of hire a meaningful metric, there needs to be a clear, agreed-upon definition that works across the organization.
Here are some methods for gathering the data needed to define and measure quality of hire:
- Employee satisfaction surveys: New hires themselves should have the chance to weigh in and give their feedback on what is working well and what is not.
- Hiring manager ratings or surveys: Surveys to hiring managers can be used to assess the hiring process but also assess how pleased they are with the performance of new hires.
- 360 degree surveys: Feedback from team members and others at the company that can give a more holistic picture of the employee’s performance and cultural fit.
- Offboarding surveys: When employees leave, the feedback can be used to adjust hiring processes and figure out what can reduce attrition.
How to measure quality of hire – tools & calculations
As mentioned, measuring quality of hire can feel subjective, but there are tools that organizations have used to quantify it. Below are some common examples.
Quality of hire scorecard
A scorecard assigns scores to various factors, such as performance, engagement and cultural fit, making it easier to evaluate and compare hires. Some scorecards are more straightforward, focusing on basic metrics like retention rates and performance scores, while others are more complex, incorporating more advanced evaluations such as employee lifetime value or engagement analytics.
A scorecard not only tracks quality of hire for individual employees but also helps analyze aggregate trends. Over time you can see if your organization is improving at finding effective talent and figure out what in your process can be improved.
Developing and implementing a scorecard with the metrics that align with your specific goals takes effort, but will help make informed judgements about your recruitment processes overall.
Quality of hire formula
Another common way to calculate quality of hire involves using a formula that combines multiple metrics to arrive at a single variable. The specific metrics used depend on the organization's goals, ensuring the outcome reflects these priorities. Customizing the formula keeps it relevant and effective for each organization’s unique needs.
In the example formula below, we are using performance, culture fit, and hiring manager satisfaction as input metrics.
Formula:
(factor 1 +factor 2 + factor 3) / number of factors) = Quality of Hire (%)
Example:
Let’s calculate quality of hire for a new employee with the following input metrics:
- Performance score: 80/100
- Culture fit rating: 100/100
- Hiring manager satisfaction: 90/100
(80 + 100 + 90) / 3 = 90%
In this example, the quality of hire score is 90%, indicating a highly successful recruitment.
The importance of quality of hire in today’s recruitment landscape
In today's competitive talent market, focusing on quality of hire is more crucial than ever. As organisations face evolving challenges such as skills shortages, technological advancements, and shifting workforce expectations, hiring the right talent has become a key strategic priority.
Here are just a few reasons why focusing on quality of hire is beneficial:
- Drives organizational success: Hiring the right talent leads to high-performing teams that are better aligned with company goals, helping you achieve goals faster.
- Reduces costs and saves resources: A recruitment strategy focused on finding the right people lowers turnover, reducing the time and money spent on hiring and onboarding for the same role.
- Strengthens employer brand: Consistently hiring top-quality candidates enhances your reputation as an employer of choice. A workforce of well-matched hires is more engaged and more likely to promote your company among their networks.
- Improves candidate experience: Making sure candidates receive an accurate picture of your company during recruitment helps them make informed decisions—not just about joining, but about staying long-term.
Conclusion: Why quality of hire matters
Understanding and improving your quality of hire is no longer optional — it’s a strategic necessity for organizations aiming to grow in a modern business landscape. By using data-driven metrics, clear scorecards, and consistent evaluation methods, you can ensure you're hiring the right talent—people who are well-suited for the role, aligned with your company, and committed to long-term growth.
Whether you’re just starting to measure quality of hire or looking to refine your approach, focusing on this metric can help you build stronger teams and drive long-term success.
Read more about quality of hire and other trends shaping the industry in our 2025 Recruitment Trends Report.
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