How to measure quality of hire

How to Measure the Quality of Hire?

When we had earlier talked about top recruitment metrics, Quality of Hire was right at the top of the discussion. While most ATS and recruitment software claim to make the recruitment process more efficient, the ultimate focus should be on hiring the best possible candidates because that will have a greater impact on the final bottomline. Therefore, it is essential to understand what exactly quality of hire is and how recruiters can measure it consistently.

  1. What does Quality of Hire mean?
  2. Why is Quality of Hire important?
  3. How to measure Quality of Hire?

What does Quality of Hire mean?

Quality of Hire tracks the value that new employees bring to the organization, how productive and proactive they are and how well they fit in the cultural fabric of the company. A hiring manager is now more of a strategic partner within the organization and as a result, there is more focus on the measurable benefits that recruitment can bring to the business. Therefore, quality of hire has now become one of the most important recruitment metrics and also one of the toughest to measure.

(Also Read: Top 5 Recruitment Metrics That Matter)


Why is Quality of Hire important?

People are the most important asset of an organization. Therefore, getting the best people to work for you is not an option, but a prerequisite for any organization’s success. At the end of the day, it’s not the strategies that do the magic; it’s the people who execute them. This is why your employees can prove to be your biggest competitive advantage. At the end of the year when you spell out the sales figures never forget that it’s your employees who made it all possible.

Companies that win are often those that invest in building a strong workforce. Such organizations make sure they hire only the top quality candidates for any role. Their recruitment strategy is centered on improving their quality of hire because a bad hire can not only prove to be wastage of financial resources but also have detrimental impact on overall performance of the team.

Read more about the perils of making a bad hire here:

How to measure quality of hire?

Measuring quality of hire is no simple task as each organization and within each company; individual teams define value and performance differently. According to experts, it is an elusive metric and companies are still evolving, with companies testing out different methods to come up with their version of quality of hire. In other words, we cannot fit this metric in a straightjacket because in the end it all depends on the businesses’ priority. Quality of Hire depends on some factors such as employee performance, retention, productivity, impact on business bottomline, and employee turnover although these are not quality-of-hire measures by themselves.


(Also Read: How To Measure Candidate Experience?)

Some of the ways in which you can measure quality of hire in your organization are:

Conduct Hiring Manager Satisfaction Survey to gauge quality of recruits

The easiest way to gauge quality of hire is to ask the hiring managers through a periodic survey their satisfaction level regarding the performance of employee. This method is quite popular as getting data from hiring managers is not that tough. Also, the survey can be conducted regularly. However, there are some drawbacks to this method as hiring managers can be quite subjective in their response. Instead of approaching the survey objectively, they might be influenced by emotional and other human factors while judging the new hire. Besides, many hiring managers would avoid filling long surveys and especially HMs who have made 10 requisitions wouldn’t certainly want to fill out 10 surveys.

Measure Quality of Hire through Performance Reviews

If your company has a comprehensive performance review process in place, it can provide an accurate and objective measure of the quality of hire made. Comparisons of the new hires with your consistent high performers can be pretty effective to gauge their quality. Linking the new hires with performance metrics such as achieving a certain objective/target within a limited period of time is also quite popular. Whether it is selling certain number of units, acquiring new customers or achieving certain level of customer satisfaction, all these are measurable goals which can provide an accurate picture of the quality of new hire. However, this method will only work if the company is good at measuring performance and doesn’t set unrealistic goals for employees.

(Also Read: How to Improve Recruitment and Selection Process?)

Use Retention and turnover to measure Quality of Hire

According to LinkedIn, 48% of companies use Turnover and retention metrics to measure quality of hire. Retention rates tell how many employees found the company as the right fit and therefore chose to stay on. However, the retention rate applies to overall organization and therefore they can’t be used to find individual quality of hire. Also, retention rate is more often than not influenced by the manager, the onboarding process and the quality of workplace. This is why we cannot take it as a reliable metric for measuring hire quality.

Predicting Quality of Hire through Pre-hire quality assessments

All the points discussed earlier are for measuring post-hire Quality of hire. These are long-term methods and can be used to establish a company standard for measuring this metric.  However, with pre-hire tests and assessments in place, we can quickly gauge how successful the candidate will be, if hired. Lou Adler, the founder of The Lou Adler Group, a talent consultancy firm has created a unique talent scorecard that helps predict QoH. Using a mix of these strategies will help you get a fair idea of the quality of hire.


Developing recruitment strategies to attract and retain talent

Recruitment Strategies to Attract and Retain Talent

What’s the purpose of making recruitment a strategic process? As per research by Josh Bersin, Principal & Founder of Bersin Research, companies spend 3 times more on recruiting than on employee training. Owing to high employee turnover rate (around 20 percent of all workers change their jobs every year), recruiters are continuously in the hiring mode, advertising jobs, sourcing, screening, interviewing and onboarding candidates. With so much complexities involved, thinking of recruiting in a linear fashion wouldn’t bring out the best results. You need to have a recruitment strategy that makes the process more efficient and helps achieve the desired results.

What is a recruitment strategy?

Recruitment strategies define the approaches to be used in order to get the best talents from the job market. These are a combination of choosing the right recruitment processes, right target audience and the right approach to make the best hiring decisions. It is a plan of action in place to successfully find and recruit high quality candidates.

Recruitment strategies to attract and retain talent

Use Data Driven Recruiting strategy

A huge amount of data is generated in recruitment every day; during the application process, while screening candidates, while communicating with them or assessing them after hiring. The advent of tools that can analyze this “Big Data” and provide actionable insights has led to the development of data driven recruitment strategies. Recruitment teams using data driven recruiting are more likely to reduce their hiring costs and improve the recruitment efficiency. Tracking data at every juncture of the recruitment process can result in real cost benefits. For example, tracking source of hire to determine which channels bring the best candidates will allow better budget allocation for job advertising. Similarly, tracking the conversion ratio of applications from one hiring stage to another can show the efficiency of the recruitment funnel and unearth any underlying issues which might be impacting the recruitment performance. Using data driven strategies, you can easily build a business case for further investment in technology to better utilize the available data.

(Also Read: Big Data in HR: Why it’s here and What it means)

Work on Passive Recruiting Techniques

Most recruiters are so occupied pursuing active recruitment strategies that they do not have any time or patience for passive candidates. Passive recruitment refers to attracting potential candidates who are not actively looking for a change. While this might seem counter-intuitive, passive candidates can actually serve as a great investment as the competition for them is the least. In addition to the cost benefits, candidates hired through passive recruitment techniques tend to stay longer with the employer as they will take the decision to change their job based only on strong reasons. However, to make passive recruiting successful, patience and communication skills are necessary as the whole concept of passive hiring is based on reaching out to interesting profiles, following up with them and gradually building a trustworthy relationship. In active recruiting, job ads discuss skills and experience required. However, in passive mode recruiters are in selling mode, and until you talk about opportunities and growth, you are not going to excite the passive candidate to leave his well settled job. Passive recruiting work best for leadership roles as most candidates on executive level are not actively looking for job change.

Adopt Creative Recruitment Strategies

Creativity is not meaningful only for so-called creative professions. In today’s age, as much emphasis is laid on being technically equipped, equal value is given to creative thinking. Recruiters can also be creative while planning their hiring plan for the year. How, you may ask? It depends on your target audience. If you are targeting millenials for a role, then using quirky social media posts for attracting their attention could be a good idea. A good example is the Hubspot’s Pinterest page which introduces jobseekers to its work culture and office.

(Also Read: Hiring trends in 2018 That You Can’t Ignore)

The famous fast food chain, McDonald uses Snapchat to find relevant candidates. It runs 10 sec ads on Snapchat where its employees talk about their working experience in McDonald. PwC hosts a monthly podcast to discuss workplace challenges, Johnson & Johnson uses the text recruiting app to review the language of its job postings, and Walmart goes even further by using virtual reality to attract potential candidates. With the advancement in technology and development of online social tools, we are living in a barrier free world where nothing is stopping your creativity to come up with next winning recruitment strategy.

Develop Strategies used to Recruit Global Talent

When economies are going global and we hear talks of inclusive growth and development, limiting your recruitment process to a very miniscule target audience of your city or state will be a regressive step to say the least. Growing economies also need more talent and if a jobseeker who stays in another state or country is qualified and willing to move, then why not hire them? Also, if the nature of work allows candidates to stay at home and work remotely, your hiring strategy should definitely be global. Global talent adds diversity to workforce, and brings a different perspective to any business problem.

After all, your prime responsibility as a recruiter is to attract and retain top talent, as it is the key to remain competitive. However, you need to do some extra work for hiring an offshore employee. Taking care of aspects like different time zones, communication styles, cultural difference now become a priority. Doing due diligence in these areas will make sure your rest of the recruitment process goes as planned. But first you need to make your employer brand such that it becomes a talent magnet for jobseekers globally.

(Also Read: How to Improve Your Human Resources Department?)


Importance of Artificial Intelligence in HR: Five Practical Applications

Importance of Artificial Intelligence in HR: Five Practical Applications

While we can keep browsing through articles scattered all over the web that speak about the impact Artificial Intelligence is creating in HR, there are only few who delve into the practical problems being solved by use of Artificial Intelligence. Time has come when instead of talking about theory of the AI and its high-level impact, we look at its real world applications in context of the HR industry and the ways in which the recruitment can take full benefit of the resulting disruption. As a forward thinking, technologically inclined product vendor, we have listed some of the players which are doing outstanding work in this field. There are others also, but these have impressed us the most.

Here are the five practical applications of AI in hiring that make us understand the importance of artificial intelligence in hr:

Mya Chatbot aka Artificially Intelligent Recruiter

Formerly known as Firstjob, Mya systems have developed a recruiter chatbot, named, Mya. The bot uses artificial intelligence to communicate and interact with jobseekers.  Mya was launched in July 2016 and it works on different levels such as sourcing CVs, screening them for the job and scheduling the interview. The application assistant relies on Natural Language Understanding to find meaningful information from the candidate’s response to a query and accordingly responds to it.

Mya also delivers regular updates automatically to the applicant about the status of his job application. The best part about Mya is that it can easily integrate with your existing ATS and career sites. The cloud based bot uses different mediums like Facebook messenger, Skype, SMS and Email to communicate with the applicant from within the ATS. Over the course of its existence, the chatbot has interacted with more than 2 million candidates growing its knowledge base intelligently with every interaction.  The automation made possible by Mya enables recruiters to free up a large part of their bandwidth for doing actual HR tasks.

(Also Read: Chatbots In Recruitment: How Do They Help?)


Relink is a Copenhagen based startup that sells APIs for screening and matching candidates. These APIs use machine learning to identify different patterns in CVs and accordingly match them to a particular job.  Having the experience of reading through more than 20 million CVs, Relink is one of the first players to provide a machine learning based platform for CV-Job matching.

The smart API can be integrated with the existing recruiting software to boost its search and matching capabilities. They have named the API as Marlowe which uses Artificial Intelligence to provide smart recommendations, do smart research and offer insights based on industry trends and skills. The purpose is to make it easier for the recruiters to find the right match, and save crucial time in the process by application of machine learning and big data.

(Also Read: Benefits of using Semantic Search in Recruiting)


If you are looking for an AI based tool that reduces bias in recruiting, HiringSolved has you covered. Its experimental tool RAI uses hundreds of data points to identify diverse candidates to help you reach the diversity goals. The tool uses a proprietary statistical model that was developed in house that allows users to boost search relevance through the platform’s ethnic and gender diversity models. The other function of RAI is similar to that of Mya, which is interacting with candidates just like any other human assistant.

RAI uses the same Natural Language Processing that Mya uses to understand the conversations and come up with a suitable response. The developers promote its context awareness as one of the big differentiators amongst its competitors. Other than RAI, Hiringsolved has developed an AI powered advanced “talent matching and search” technology called Talentfeed. Talentfeed analyzes billions of data points across the social web to come up with a pool of talent along with data of their skills, experience and more. The same technology can power your ATS, CRM and HRIS to enable AI based recruitment in your organization.

Read now: 5 Best AI Based Recruitment Software in India 


Do you need to improve your job listings? Textio will help you do precisely that and through Artificial Intelligence. It is an augmented writing platform which provides HR all the help they require for constructing effective high impact job postings. Powered by machine learning and Natural Language Processing, Textio smartly analyzes millions of job postings and recruiting outcomes to recognize the patterns that result in some posts getting greater success than others in terms of applies.   The startup aims to solve diversity and talent sourcing problems by helping the recruiters write their best job post ever.

(Also Read: How to Improve Talent Sourcing in Your Organization?)


If video interviewing is one of your main recruiting activities then it’s worth taking a look at Hirevue, a recruiting startup based out of Jordan. The startup applies AI algorithms in the most innovative ways to select candidates through video interviews by analyzing their raw audio, facial expressions and many other data points. The Hirevue Video Intelligence platform aims to speed up the recruitment process by reducing reliance on CV and combining video interviews with predictive, reliable I-O science and artificial intelligence.

(Also Read: The Role of Artificial Intelligence in Recruitment)


Choosing the Right Recruiting Software for Your Business

Choosing the Right Recruiting Software for Your Business

Enough has been said about the importance of using automated tools for hiring.  Irrespective of whether you use the latest cloud-based technology or traditional on-premise HR software, the benefits of these recruitment solutions are immense (Also Read: Advantages of using an applicant tracking system). Technology in itself is a huge enabler as it empowers the user to perform more tasks with greater efficiency and accuracy. However, if the choice of technology you use does not match your needs, then much of those benefits that we expect become of little importance. Here is a primer on how to choose a recruitment software that suits your company.

Convincing the top executives of the company to invest in new HR technology, especially in new recruitment solutions is a tough task. You have to justify the cost with the expected ROI, show some concrete evidence in the form of case studies and what not! However, even before you make a move towards this boardroom discussion, you should be sure of what you have chosen as an investment is actually good for your company and suits your hiring needs. An imperfect choice can cripple your productivity instead of improving it.

Here are some points to keep in mind while choosing a suitable recruitment software:

Define your recruitment software requirements

The marketplace is replete with a number of recruitment tools. But not all of them are designed for all types of industries and businesses. If you are into consulting, your expectations from a hiring software will be very different from a product company. Similarly, if you are a startup, you might not require a full-fledged enterprise recruitment management system, as you will be hiring less than, say, an established company with 1000 or more employees. While researching a potential hiring tool, be sure to ask some relevant questions like:

1.) Who was this software designed for? What is the target audience?

2.) What are your current requirements?

3.) Is the software scalable for your future needs?

4.) Who designed this software? Do they have the relevant expertise?

The answer to all these questions will throw up some interesting facts which will be essential when you take the final call.

List the functions that your recruiting software should perform

Once you have sorted out your current requirements and future needs, it’s time to list down the essential functionalities that will fulfill those needs. Think function first. What are the tasks that you want the software to do with minimal manual intervention? Common HR tasks like job posting to different channels, resume collection at one place, resume matching, CV upload, interview scheduling, sending interview emails and reminders must be on top of this list. Any software that you choose should do all these and much more such as tracking candidate progress, automatic SMS/email alerts, analytics and reports and social recruiting through channels such as Facebook and Twitter.  By deciding all that is integral to your hiring process, you can start assigning value to the vendors and their tools accordingly.

(Also Read: Recruitment Software Features)

Select a recruitment software with a user friendly design

Any piece of software that has a steep learning curve is always looked at with disdain by the users, however feature rich it might be. No one wants to waste time trying to figure out the right combinations when you want something done. Recruitment management software should not require long hours of training or high levels of tech know how. The interface should be intuitive and offer minimum resistance to even the first time users. If you are unsure, take the trial version first and explore it extensively before zeroing on any one tool.

Choose a recruiting software which is cloud based

There are many organizations that use different tools for social recruiting, job posting or maintaining internal and external communication. If you also have an existing HR management system in place you would want the new recruitment tool to seamlessly integrate with your current system. A smooth interaction amongst different layers of technology is essential for a quicker transition and greater performance at work.

Again, cloud based systems are all the rage in the market currently and rightly so, as they have numerous benefits over the traditional on-premise software. In ideal conditions, your choice of software should be online or web-based, as the learning curve is less, and you won’t have to spend huge lumps of money on buying servers and other hardware and hiring trained IT personnel for maintaining them. Cloud based system can also be accessed remotely, and require minimal maintenance.

(Also Read: Why Cloud Based ATS is a better option)

Look for a Cost Effective Recruitment Software

The argument that you will be saving efforts through technology is never going to convince the CFO for investing in a new tool. Any investment’s ROI is judged on the basis of the money that it either saves or earns for the business. Therefore, while deciding on the hiring tool you should be able to justify the costs with the ROI. The most feature rich software will also be the most expensive. Will you be able to justify the costs involved? Therefore, while doing your market research, take your time to explore the different options available, make the most of the free trials, and chalk out the options that fit in your budget. If necessary, negotiate with the vendors and squeeze out the best possible deal for your company.

(Also Read: How to Convince Your Management to Invest in HR Technology?)

Consider data security in recruitment solution

Even the best of software require a helping hand to operate at least occasionally. The importance of good vendor support increases if this is the first exposure towards latest technology for your recruiters. Choose a software vendor that is able to deliver necessary training and support whenever required in a timely manner.

If you are choosing a cloud-based solution, data security is of paramount importance. Recruitment involves sharing of a lot of sensitive and private information and keeping that data in safe hands is no less important than any other aspect of your business. A non-compromising attitude on data security will also lend your brand greater credibility in the market and can become one of your USPs.

(Also Read: How to Get Most Out of Recruitment Software? )


Big Data in HR: Why it's here and What it means

Big Data in HR: Why it’s here and What it means

Without a doubt, big data, predictive analytics and data science are some of the most used terms in the tech space these days. Many will tell you that the future of every industry, leave alone recruitment, lies in exploring the “immense potential and possibilities” offered by these technologies. While this might be very true for some sectors, (healthcare, banking and finance), is recruitment also one of those industries is the big question. Does big data spell big changes for recruitment in the future, or all we are witnessing is a false rhetoric? Let us examine.

What is Big Data in HR?

When the term ‘Big Data’ was being used in the lunch table conversations in 1990’s at Silcon Graphics, even John Mashey, the person attributed to popularizing it must have not imagined in his wildest dreams that this would become one of the hottest topic of discussion in the near future. Beyond 2002, big data has emerged as the strongest contender for becoming “the transforming technology” for every industry. The growth in its significance over the last few years can be attributed to its pervasive nature, with applications ranging from meteorology to preventing epidemics, revolutionizing healthcare to preventing crimes. Yet, there is little that is defined about Big Data, except for its definition, may be. Majority of us know big data as

“Big Data is high-volume, high-velocity and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision making, and process automation.”

The 3V’s of Big Data as defined by Gartner are:

      Volume: Volume refers to huge amount of unstructured datasets to the tune of many terabytes and petabytes

      Velocity: The data is being generated at speeds far greater than we can process.

      Variety: Data comes from a number of sources in a number of forms. New forms of unstructured data are being generated.

Where does all this fit in the scheme of HR related processes like recruitment?

We have found divided opinions when it comes to the usability of Big Data for HR. Experts believe that in the current situation, there is not much utility that can be extracted out of big data and analytics. First of all, going by its popular definition, Big Data needs to be a collection of huge unstructured datasets. Now not many organizations have thousands of employees and even that number is not big enough to be considered for a reason to use sophisticated tools and software associated with big data. These analytics tools are still “work in progress” and moreover, it can take months to set them up before they are able to spew out any useful information. Does HR have this kind of time at their disposal?

Role of Big Data Analytics in HR

Those who think Big Data and HR analytics have the answer to all hiring problems of the HR are forgetting that these questions have been a part of discussion right from the history of recruitment. What makes a good hire stay?  Which qualities constitute a top class employee? These questions have been dealt with in detail through multiple researches and surveys throughout the history of recruitment across industries. If we hope to add some new insights to the already available information by spending thousands of dollars on developing analytical tools, we might be fooling ourselves. Google’s Project Oxygen is one such example.

(Also Read: 5 HR Trends To Watch Out For In 2018)

Yet why such huge noise about Big Data in recruitment? There are many HR software providers who swear by the power of Big Data and HR analytics. Surely, there must be something more that meets the eyes.

Start by making sense of the basics first. Use small data to its fullest potential.  Most ATS or Recruitment Management Systems provide a variety of data in form of candidate sourcing reports which have various parameters that keep a track of channels that bring in the best candidates. These automatically generated reports carry a wealth of information and do not require any manual intervention. Also monitor stage-to-stage hiring metrics and identify bottlenecks if any that are causing the process to become slow.

In HR, data is of key importance without any doubt. Whether it is recruitment or human resource management or performance management, it’s the numbers that matter. However, the data associated with all these processes resides in different databases. Until we are able to combine these databases in a compatible manner, we might not be able to answer even the simplest questions. Once you have a common database, it becomes easier to analyze it and identify predictive patterns.  You should be able to understand the relationship among the data to really make sense of it.

Importance of Big Data in HR

Every recruiter wants the best numbers against their names when it comes to measuring their performance through a host of recruitment metrics such as offer acceptance ratio, retention rates and cost per hire or quality of hire. What if data could help you in driving all these metrics to their best conclusions? Wouldn’t it be a value proposition to use data driven approach to recruitment if it guarantees you a better success rate by

Importance of Big Data in HR

more than 300 percent? (Precision Metrics). Benefits of data driven recruitment are plenty for the recruiters. They can benefit from a data driven approach to hiring in terms of improved employee retention rates, reduced hiring errors and a bird’s eye view of the overall recruiter performance.

Impact of Big Data on HR

Let’s look at a big data hr use case. Take talent acquisition for example. A number of stakeholders are involved in the talent acquisition process and also a number of man-hours that are spent in zeroing on who you think is the right candidate. However diligent you might have been in your pursuit, there were few ways to tell that the person you have hired will stay for the long term, or will prove a valuable resource for the team.  This challenge was always a sore point for the recruiters, and still remains so, but those who have been able to develop the ability to harness and understand the data about their hires are making the most impact and have been partly able to offset some of the uncertainty that comes with talent acquisition. Hence, some of the benefits that you can experience with big data predictive analytics are

1) Reduced recruitment time

2) Reduced human bias and increased workforce diversity. According to McKinsey, for every 10% increase in diversity, profits can grow by up to 3.5%.

3) Improved hiring quality. Engage with the best talent before competition.

Implementing an Effective Data Driven Recruiting Strategy

Data in itself is not the game changer. The ability to collect, analyze and use this data for improved decision making facilitates limitless possibilities for enterprises. Collecting data is not a new exercise, even in HR. Most HR management software provide the most essential recruitment metrics like cost per hire. The need is to move further from simply collecting data to letting it drive decisions.

1) Develop a formal data driven strategy: Once you have a holistic view of the data, it’s important to identify the key takeaways that you want from the data analysis. For the same, it will be good to have a formal strategy. While every organization will have its own priorities, long term objective and ongoing goals, the strategy should be able to clearly define how recruitment is driving business results.

2) Integrate the data:  If your recruitment data is disintegrated, it won’t make much sense in itself. Any hiring manager would face challenges in fully realizing the potential benefits of a disjointed set of data. Thus the first step is to gather data that relates to different parts of the recruitment process as well as measure the performance of any and every tool being used. The easiest way to achieve this objective will be to connect all forms of recruiting technologies, with data from each solution accessible from one centralized location.

3) Choose HR analytics solution provider:  HR organizations rarely create their own talent analytics tools; instead they prefer to find worthy vendors who have a proven track record of driving performance. Owing to these vendor based tools, the potential of data and analytics in talent acquisition is being exploited by companies of all sizes and the benefits are not limited only to the largest organizations.

In terms of functionalities, you should be looking at:


Implementing an Effective Data Driven Recruiting Strategy

There are no two thoughts about the fact that the future of recruitment will be driven by data and analytics. Yet, we do not see a heartwarming adoption of data based tools in recruitment organizations currently. Meager 14% employers are currently using advanced analytics to make talent decisions. LinkedIn, in its research, reveals that three out of four organizations do not use data at all for any of their talent acquisition decisions. But the future is going to change all of this and that too at a breathtaking pace. As an HR manager, it shouldn’t be a problem for you to build a strong business case for tools and technologies that will support end to end business goals.

(Also Read: The Importance of HR Analytics in an Organization)