New Research: Quality of Hire

Over 60% of companies in Aptitude Research’s latest survey identified improving quality of hire as their greatest recruitment challenge. Organizations have been talking about quality of hire for years. Yet, we have no standard in the market for defining or measuring it. In fact, most companies still don’t know what makes a great hire at their organization.

Why is quality of hire such a struggle? What can organizations do to improve it?

I am excited to announce that we are launching some new research on quality of hire that will help to answer these questions. Yves Lermusi, CEO of Checkster, and I will be discussing some of the findings on a webinar next Tuesday at 12pm EST. I hope you can join us!

Here are some of the topics we are going to discuss include:

–          Ownership: Is quality of hire a talent acquisition metric or a hiring manager metric? Over 70% of companies surveyed said it is the responsibility of talent acquisition. Yet, companies need to use post-hire indicators to measure it. We are going to discuss how to get the right data on your first- year employees and use that data to improve your talent acquisition processes.

–          Business Impact: Organizations can no longer ignore quality of hire. The impact extends into the business since companies that improve quality of hire are three times more likely to see gains in first-year retention , first-year performance, and first-year productivity.

–          Definition: Currently, only 26% of companies have a formal methodology for measuring quality of hire. Quality of applicant is a pre-hire metric that addresses the candidate’s performance at previous jobs or through previous experiences. Quality of hire measures post-hire metrics including first-year retention, performance and productivity. Understanding this distinction and then creating better collaboration and communication around the two is critical for defining quality.

–          Measurement: Measuring quality of hire is dependent on the availability of data . While many of these key performance indicators are common in discussions around quality of hire, more organizations do not have visibility into this data. Hiring manager satisfaction is not measured consistently throughout the organization while organizational fit is often not measured at all. This data is easy for hiring managers to access through payroll or HRIS systems but it is not communicated with talent acquisition teams and leaders.

–          Improvement: Companies that invest in technology solutions were two times more likely to improve quality of hire. The key to success for quality of hire is in what happens from interview to offer. Organizations cannot ignore solutions that play further down in the funnel that directly impact quality of hire including interview solutions, assessments, background screening, online reference checking and onboarding solutions.

Organizations need more clarity around how to define, measure and improve quality of hire. If you are just starting your quality of hire journey or you are looking to help validate or refine what you are currently doing, I hope you can join us next week!


  • Madeline Laurano

    Madeline Laurano is the founder and chief analyst of Aptitude Research. For over 18 years, Madeline’s primary focus has been on the HCM market, specializing in talent acquisition and employee experience. Her work helps companies both validate and re-evaluate their strategies and understand the role technology can play in driving business outcomes. She has watched HCM transform from a back-office function to a strategic company initiative with a focus on partnerships, experience and efficiency. Before founding Aptitude Research, Madeline held research roles at Aberdeen, Bersin by Deloitte, ERE Media and Brandon Hall Group. She is the co-author of Best Practices in Leading a Global Workforce and is often quoted in leading business publications including The Wall Street Journal, The Boston Globe, Yahoo News, The New York Times and The Financial Times. She is a frequent presenter at industry conferences including the HR Technology Conference and Exposition, SHRM, IHRIM, HCI’s Strategic Talent Acquisition Conference, Unleash, GDS International’s HCM Summit, and HRO Today. In her spare time, she is a runner, an avid sports fan and juggles a house full of boys (where a spontaneous indoor hockey game is not unheard of!).