How Can You Measure Quality of Hire?

Talent leaders consider the Quality of Hire(QOH) metric as an important indicator to evaluate performance. However measuring this is not easy. Here is a quick guide on how to measure Quality of Hire.

Recruiters know very well how important it is to track the effectiveness of hiring. Measuring the quality of hire is the way to find out how effective the company recruitment is. 39% of talent leaders agree that quality of hire is the most valuable metric to evaluate performance. However, it is also one of the most difficult metrics for talent acquisition teams to measure. So how can you measure the quality of hire?

What is Quality of Hire?

In simple words, it can be defined as the value that a new hire brings to a company. The value means how much a new hire contributes to the company’s success by completing tasks, helping others, and improving the work quality. It measures the overall success of a new hire in meeting their job expectations. It can also be used to measure the success of the company’s recruiting efforts as a whole.

Why should you measure the Quality of Hire?

Measuring the quality of hire will give you the information needed to improve the company recruitment strategy. You will come to know the weak points on which you can work to improve. With this measure, you can try improving your hiring strategy and minimize costs from hiring mistakes. It is also useful for evaluating the performance of the talent acquisition team.

Quality of Hire indicators

Performance reviews

First, you should examine the performance metrics. According to LinkedIn, 50% of companies consider performance reviews when hiring quality of hire. Is your new hire able to meet and exceed established benchmarks for their role? Are they achieving the necessary milestones and learning their job at a good pace? Are they meeting the company and team goals?


49% of talent leaders use this metric to measure the quality of hire. How long are your employees staying in your company? The logic behind calculating this metric is simple: The longer the employee works in your company, the more value they contribute. If you wish to use retention to track, here are the measures to use:

  1. Turnover rates among the top performers
  2. Turnover rates among all the new hires
  3. Turnover rates for mission-critical roles

Time to productivity

Ramp-up time, or in other words time to productivity, is another metric certain companies use. It is defined as the amount of time a new hire takes to reach full productivity in the company’s desired time frame. You can measure this by looking at the percentage of goals achieved by the new hire.

Employee Lifetime Value

A person’s Employee Lifetime Value (ELV) is measured over their tenure at the organization- from the day they joined till the day they leave. It represents the total net value that an employee brings to your organization. With this metric, employers can link recruiting to performance metrics as well. Knowing the ELV enables the executive team to calculate the value of acquiring a top performer and their impact on the company’s revenue system.

Measuring pre-hire quality.

Another important metric is measuring the pre-hire quality. These assessments are short-term and they are the basis of an effective interview process. This assessment reflects everything a company does to select the best candidates.

This measure will give insights into the sources of the hiring problems that occur from recruitment. Look at the candidate’s pre-hire by recruiter and manager, candidate quality, passive candidate conversion rates, and referral rates by recruiters.

Measuring hiring manager satisfaction

This metric is ranked as the 3rd most important hiring metric by the Global Recruiting Trends Report. Around 43% of organizations use this metric to measure the quality of hire. This can be done through surveys. Surveys are sent for each new hire to the manager. However, taking this metric in isolation can be misleading.


Measuring the quality of hire would give you insights into how efficient your team is working and the effectiveness of the recruiting team. Knowing your weak points, you can start working to improve them, highlight what’s going well for the company, and also make sure that the right people are being hired for the right roles so that your company moves forward.

Also, remember to use an Applicant Tracking System for a smooth hiring process. AviaHire provides an integrated Applicant Tracking Software that will provide you with an end-to-end recruitment solution. You can source, evaluate, attract and hire top talent at every stage of growth.

For more interesting blogs on Applicant Tracking System and current happenings in the HR world follow us here and on LinkedIn!

Start For Free!

Hanan Ashraf
A strong believer in the power that words have over people, Hanan works on producing content that is creative but at the same time graspable for readers. A content writer and digital marketing intern, she loves to write about automation, HR, performance management, and employee wellbeing.