Harrison McMillan recently attended the Australasian Talent Conference and the topic ‘Quality of Hire’ was one of the most popular conversations among the National/Global Recruitment Managers and Human Resource Directors in attendance. However, the key question of who should own this metric brought out a range of views, opinions and varying practices from those present. Leading Recruitment Managers and Human Resource Directors were either starting to measure the ‘Quality of Hire’ or could see the importance of the measurement but debated whether it was HR that should hold sole responsibility for the result.
And with good reason. The metric ‘Quality of Hire’ is a delayed assessment measurement that should be made at the 12 month tenure mark at the very earliest, which is well after the role that recruitment plays has been completed. It is much easier to gauge the efficiency of a process when measuring hard statistics such as “time to fill” or “cost of hire”.
When measuring ‘Quality of Hire’ it is not only the skills, performance and cultural fit of the candidate that needs to be taken into consideration but also the success of the on-boarding program, their integration into the team and broader organisation, their tangible career path and the relationship they have with their direct Manager. Keeping this in mind, it appears the accountability for the ‘Quality of Hire’ metric is a shared responsibility between the business and HR / Recruitment.
Most organisations can see the value in measuring ‘Quality of Hire’ and in a survey conducted by staffing.org C- Level Executives rated new hire quality as the most important performance metric. A key note speaker at the Australasian Talent Conference said 94% of CEOs believe people are the key assets within the organisation. Interestingly, in a recent survey completed by the Economist Intelligence Unit, the results stated only 45% of CFOs identified with HR and saw key value in the HR functions.
There are already a number of formulae for measuring ‘Quality of Hire’ available in the public domain however they usually have been developed in bespoke manner to align with an organisation’s internal processes and existing measurements. It’s a good place to start though, and a great way to begin testing your own ‘Quality of Hire’ measurement or to begin recording the required information -if it’s not there already.
Once you are able to put a dollar amount on the quality of your hires (or at least your part in them) then might that not make the other 55% of CFOs start to value the HR function more? And once our C-Level Executives start to correlate that hiring efficiently as well as effectively has a substantial impact on workforce productivity, which in turn correlates to a significant dollar figure in business revenue and profit, then maybe they may not only start to value the HR function but also see the benefit in “owning” the metric ‘Quality of Hire’ themselves to ensure all areas of the business are working together to achieve the goals they set in this area.
Written By Dani Cuff and Jodi Walton. For more information on how to measure ‘Quality of Hire’ please contact Harrison McMillan www.harrisonmcmillan.com.au