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How is quality of hire measured?

26th February 2020

Measuring quality of hire can seem daunting at first, especially as it is something so qualitative by nature. With 39% of talent leaders acknowledging that quality of hire is the best metric to measure successful recruitment, but only 5% feeling that they’re using the best tactics to measure it, it is important to take a look at how to calculate this metric. But do not fear, there are a few different ways you could choose to measure quality of hire. These will be outlined in this blog post.

The Measures…

  1. Performance Reviews.

These are a great place to start as you gain a lot of in-depth data. If a new hire is performing well, then you can assume that they were a quality hire. However, it is not always this simple. Performance reviews are subjective, simply speaking, they are somebody’s opinion, so must be taken with a pinch of salt.

However, even with the above tips, there is still a lot of bias to purely using performance reviews. For this reason, it is suggested that it is combined with other methods.

  1. Retention Rates.

This is something that gets discussed a lot in recruitment. Retention rates are a great way to measure the quality of hire as the higher the retention rates, the higher quality of hire is. Again, this alone cannot be used to measure quality of hire as there are many reasons a hire may choose to stay with, or leave, a company. Try looking specifically at the turnover rates of the top performers, this could give you an extra bit of insight.

  1. Hiring Manager Satisfaction.

This can be easily done through surveys, making it a quick and effective measure of quality of hire. The survey simply needs to include satisfaction with competency and satisfaction with performance measures.

  1. Employee Lifetime Value.

This is an indicator used to evaluate the total net value that an employee brings to your company. This is particularly useful as it is quantitative and therefore easy to evaluate the results. However, this is not something you can do straight away. It can take some time to get the baselines for your company.

  1. Pre-hire metrics.

This refers to the data you have on candidates prior to them being hired. One of the most effective ways to do this is through psychometric testing, such as the ones offered by Big5Assessments. Data such as their skills, abilities, personalities and competencies can all be used to gauge quality of hire.


All of the above information should be taken into account in order to effectively and validly measure quality of hire. Using one of the above methods alone will provide some information, yes, but the information is likely to be skewed and therefore not as useful as a combination of the methods.

Filed in: Quality of Hire

About the Author:

Nikky van Bommel is the Marketing Director for Big 5 Assessments and has worked in the Psychometric Testing industry for over 10 years. Nikky is responsible for all marketing and social media for the organisation.

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  1. How Can You Improve Quality of Hire? : Big 5 Assessments | 26th February 2020