QoH equips HR and talent leaders with information on the outcomes of their hires. This lets them shift from measuring success based on speed metrics to measuring success based on quality metrics and how well new hires are contributing to the business. This data creates value in several ways:
Focusing on the quality of hiring instead of speed drives better business outcomes. Without Quality of Hire, talent teams default to measuring Time To Fill as the primary metric for success. But some of the most important roles are the hardest to fill and should take longer. For example, an organization may hire dozens of Support Associates each year but only one Director of Engineering. Focusing on Quality of Hire will orient the recruiting team on finding a Director of Engineering that has the most positive impact on the business, fastest time to productivity, and the best cultural addition to the company, instead of trying to fill the role quickly.
Organizations can improve their recruiting and hiring process using this data to attract and hire candidates more likely to thrive at their specific organization. For example, if they learn that more collaborative employees have a higher QoH, they can rework their job descriptions and interview questions to focus on this characteristic.
Speeding up onboarding and decreasing turnover. The data gathered to track QoH helps HR identify struggling new hires early during their onboarding process, so they can receive additional attention and coaching to get back on track. This can also be used to improve employee’s relationships with their managers.
Tracking QoH identifies the great hiring managers, recruiters, and interviewers at the organization helping them hire the right people. Hiring is a team sport and it’s important that you know who is the best at hiring on your team. Measuring QoH can reveal which team members are doing well and may be able to teach the others. On the other side, it can identify hiring team members that might need more training or support.
All of these targeted improvements result in stronger new hires, faster onboarding, greater employee lifetime value, and ultimately better business performance. Some of the benefits Searchlight customers have seen by improving QoH include:
Online education provider Udemy increased first year new hire retention by 20%.
Digital mortgage closing platform provider Snapdocs saved $3M+ in recruiting costs, and generated $3M+ in increased revenue because of increased performance.
B2B online auction platform B-Stock improved Time to Fill for Customer Success roles by 40%, ramped new hires faster, and reduced 90-day attrition and misalignment rates.
Measuring QoH allows hiring teams to create a virtuous cycle of talent
[Susy, will you add this graphic but without the product call-out boxes?]
Avoiding Bias
Along with measuring Quality of Hire, organizations should also audit their talent processes to ensure they don't bias against any marginalized communities. Bias leads companies to wrongly screen out great candidates and build homogenous, lesser-performing teams.