Why is the recruiting metric known as “quality of hire” so important? In the fast-paced world of tech recruitment, finding the right candidates is like hunting for treasure. You receive countless job applications, but how do you separate the gems from the rubble? In this article, we’ll explore what quality of hire means, how to assess it, and why it’s crucial for your tech company’s success.
We’ll also share data from past Hired research to illustrate how tech employers define it and how to create recruitment and hiring strategies to make the most of your recruitment team’s capacity.
What is Quality of Hire or QoH?
Quality of hire is a recruiting metric that evaluates how well a new employee performs and fits into your company culture after being hired. In simple terms, it gauges whether your hiring decisions result in successful, productive, and satisfied team members.
As tech workers found themselves laid off during the “tech winter” of late 2022 – early 2023, inbound applicants flooded employers’ inbound channels. As a result, TA teams found themselves drowning in applicants, but not enough qualified ones.
Recruiting teams also began interviewing more applicants per role. According to Hired survey data in The Future of Tech Hiring: 8 Bold Predictions for 2024, 68% of employers said they were interviewing more candidates for each role than they were a year ago.
In fact, 54% of surveyed employers of all sizes agreed that Quality of Hire would be their top hiring KPI going into 2024.
What does Quality of Hire mean? In The Tech Hiring Tightrope, Hired’s annual research study of tech hiring and salaries, surveyed employers’ top three definitions of a “quality candidate” were:
1) Has 6+ years of experience in the industry
2) Is “in-demand,” i.e. involved in the hiring process with multiple companies
3) Fulfills a senior-level role
How does your organization define Quality of Hire? It may be different from one employer to another.
How to assess Quality of Hire (QoH)
Assessing Quality of Hire involves several steps:
1. Define success criteria
Before you start evaluating Quality of Hire, establish clear criteria for success. What skills, experience, and qualities should your ideal candidate possess? Define these benchmarks to guide your assessment.
2. Performance metrics
Track an employee’s performance over time. Metrics like productivity, meeting goals, and contributing to projects are useful indicators. Compare these metrics with your defined success criteria.
3. Feedback and reviews
Regularly seek feedback from supervisors, peers, and the employee. Are they meeting expectations? Are they a positive influence on the team? Honest feedback can reveal a lot.
Hired partner Textio contributed this blog, Want To Hire More Women? Focus On Performance Feedback, check it out!
4. Retention rate
Analyze how long employees stay with your company. A high turnover rate may indicate a problem with your hiring process. One of the best ways to retain an employee is to, of course, start with the right candidate.
Because Hired provides such transparency in the tech recruiting process, it’s easier for both employers and candidates to enjoy better matches. For employers, this also translates into higher acceptance rates averaging 60% or more.
Related: Difficulty Keeping Your Top Tech Talent? This Could Be Why (& What to Do About It)
5. Cultural fit
Assess how well the employee aligns with your company’s culture. Do they embrace your values and work well with others?
Note the “fit” is based on values and working styles or team dynamics. At Hired, we caution against using “fit” as similar backgrounds, networks, education, or experiences. In these categories, we recommend a “culture add,” where a candidate helps diversify your team and its thinking.
6. Self-assessment
Ask employees to evaluate their own job satisfaction and performance. Their self-perception can provide valuable insights.
Separating high-quality candidates from the rest
In a sea of applicants, it can be overwhelming to discern quality candidates. Here’s how to do it effectively:
Prioritize skills
Focus on candidates with the essential technical skills and experience you need. Use resume screening and pre-employment assessments to filter out unqualified applicants.
Behavioral interviews
Conduct behavioral interviews to assess a candidate’s problem-solving abilities, teamwork, and adaptability. Ask for specific examples of their past achievements.
Reference checks
Contact references to learn about a candidate’s work ethic, attitude, and contributions in previous roles.
Technical assessments
Administer technical tests or coding challenges to gauge a candidate’s proficiency in their field or assess specific tech skills.
Want to run a coding challenge campaign to tap into a new market or surface candidates with hard to find skills or for hard to find roles? We’ve got you covered from start to finish.
Why is Quality of Hire an important recruiting metric?
Quality of Hire is more than just a statistic; it’s a predictor of future success and retention. When you make quality hires, your company benefits in several ways:
Better performance
High-quality hires are more likely to excel in their roles, meet or exceed goals, and contribute positively to your company’s success.
Team cohesion
They integrate seamlessly into teams, enhancing collaboration and overall team performance.
Retention
Quality hires tend to stay longer with your company, reducing turnover and recruitment costs.
Hired data shows candidates placed through our tech hiring platform
have an 18% higher tenure with their employers.
Positive reputation
Consistently making quality hires improves your company’s reputation in the job market, making it easier to attract top talent. This is one facet of employer branding, a long-term strategy for companies of all sizes.
Conclusion
In conclusion, “Quality of Hire” is a vital metric for tech hiring managers, engineering managers, and recruiters. It helps you identify candidates who not only have the right skills but also align with your company’s culture and values. By prioritizing Quality of Hire, you can ensure the success and longevity of your tech team and your company as a whole.
See how Hired helps employers find the right candidates, right away, from around the world. Request a demo.
Source: Employer - hired.com
