As very famously tech guru Steve Jobs once had said, “Quality is more important than quantity”, we could not help but agree with him. Also, it has always been the general notion that quality can never be quantified. As it turns out, quality is quantifiable.
Recruiting metrics are estimations used to track hiring achievement and success and optimize the method of hiring candidates for an association. When used accurately, these metrics help to assess the recruiting procedure and whether the company is hiring the right people. Recruiting metrics refer to estimates used to assemble, analyze, and monitor hiring success and optimize the hiring process in order to make better-informed decisions and gain a good return on investment.
Among recruitment metrics, quality of hire is the value that a new employee or a new hire adds to your organization based on how much they contribute to your organization’s long term success in terms of their work performance and tenure. The minimum baseline of comparison for a quality hire is that the value or the contributions that a person creates while being employed at your company is higher than the cost incurred while recruiting them.
While quality of hire is principally utilized to quantify how fruitful a fresh recruit turns into, it’s likewise often utilized as a measurement for the accomplishment of the recruitment capacity generally speaking. Quality-of-hire metrics are basic and also critical to understanding the adequacy of your organization’s recruiting procedure in any case, for some, making sense of how to characterize the estimation is a test.
Compared with other recruitment KPIs, for example, cost per hire and time to fill, quality of hire is viewed as the KPI that best exhibits a recruiting division’s vital incentive to the organization.
This key worth is clear when you consider top performers contribute disproportionately more to an organization’s efficiency. Research has discovered a top-performing representative creates 4x the yield of a normal worker.
In the event that your recruiting department can follow the quality of hire and show what number of your hires become top performers, this is the dream scenario for exhibiting your vital and budgetary incentive to the business.
Unsurprisingly, quality of hire is one of the top of useful performance KPIs. According to LinkedIn’s 2016 global trends report, it’s a priority for 40% of big companies worldwide (and 45% of small businesses).
Quality of hire is one of the most popular metrics employed by recruiters, even though there is some confusion over what it means, how to measure it, and what the metric can be used for. SHRM calls the quality of hire the “holy grail of recruiting” because of its very important yet enigmatic nature.
Quality of hire is proposed to be an estimation of the worth a representative has brought to the association. The test? Figuring quality or worth is hard to normalize. Each association will have an alternate thought of what makes for a decent worker. Also, most proportions of quality are exceptionally abstract. Assigning a numerical score to a worker’s social fit or their value to the organization can feel troublesome and tacky.
Indeed, even with these downsides, quality of hire keeps on being a mainstream metric as a result of its huge potential. At the point when determined accurately, quality of hire can be a useful asset for improving your recruiting technique and at last employing better representatives. You can use the quality of hire to limit the costs related to employing botches and to help support your organization’s income by recognizing all the more encouraging potential hires.
How technology is improving the quality of hire?
There’s no getting around the fact that: Measuring quality of hire requires assessing very sensitive and subjective data using hard numbers. How do you assign a quantity or numerical value to an employee’s hard work, effort, or even his cultural and social fit? Well, because organizations assess employees’ abilities and efforts pretty often, it’s fairly easy to turn that into a quality of hire score without using any other additional metrics.
Technology has become an important part of the talent industry today. Talent intelligence technology such as Artificial Intelligence and Applicant Tracking Systems is among the fastest-growing segments within recruitment tech today.
Artificial intelligence has already proven itself as an enabler of recruiter efficiency by reducing time to fill by 70% on average. One other area where AI has the potential to make a significant impact in the quality of hire.
The promise of an applicant tracking system for improving the quality of hire lies in its ability to efficiently use data to get a standardized match between candidates’ experience, knowledge, and skills, and the other soft requirements of the job. This improvement in matching is predicted to lead to more productive employees who are less likely to turnover.
The four areas where artificial intelligence and applicant tracking systems are improving the quality of hire are in screening, assessment, interviewing, and talent intelligence.
AI in screening
Intelligent screening software automates the screening process by using AI on your existing resume database. They can actively screen hundreds of resumes at the same time to give you the best possible match for your job opening
The software learns what existing employees’ experience, skills, and other qualities are required to fulfill a vacancy and applies this valuable knowledge to new applicants in order to automatically rank, grade, and shortlist the most suitable candidates.
AI in online assessments
Personality tests and other psychometric assessments have been used in recruitment for decades now. Online assessments help you test in numerous candidates at the same time and most of the platforms in today’s market comes with automated reports and ranking system, hence, helping you to reduce the time and costs incurred for assessing and interviewing a candidate.
AI in interviews
There are many software in today’s video technology which claims to use artificial intelligence to assess an interviewing candidates’ word choices, speech patterns, and facial expressions to assess his or her fit for the role in terms of personality and motivation.
AI in talent intelligence
Talent intelligence is where artificial intelligence is adopted to improve the recruitment procedure overall by combining different data sources to improve the quality of hire.
Specifically, an applicant tracking system uses artificial intelligence to combine data from hundreds and thousands of resumes, assessments, and interviews to provide an overall average grade of the applicants and then used to link pre-hire data with post-hire data such as on-the-job performance and attrition.
There is no rule of thumb or one-size-fits-all equation for determining the quality of hire because a true measurement of quality will rely very heavily on each organization’s goals, objectives, and priorities, as well as the requirements of each individual position.