Quality of Hire Meaning, Definition & Example

Quality of hire is one of the recruitment metrics that assesses how effectively a new employee fulfills a company’s expectations and needs. Additionally, it measures new hire performance and their contribution to the organization’s success, thus measuring the value they bring to the organization.

HR can ensure that the recruitment process is aligned well with the organization’s objectives by assessing both pre-hire quality and post-hire quality.

If the score is low on this metric, it indicates a need for hiring process improvement to better match candidates to the company’s needs. This provides insights into employee retention strategies by linking quality hires to retention rate and overall performance.

The turnover rate can also be influenced by the quality of hire, as better hires tend to stay longer and perform well.

Quality of hire can be calculated as per this formula:

Formula: (Average performance rating of new hires) ÷ (Average performance rating of all employees)

Frequently Asked Questions

Q1.	What is Quality of Hire?
Ans.	Quality of hire (QoH) meaning refers to how effectively a new employee meets a company’s expectations and contributes to its success. It’s not just about meeting job requirements but also about how well they fit into the company culture. This involves evaluating performance metrics, their attitude, and their potential for growth. A great hire does more than their job. They help the team succeed and contribute to the company’s growth.
Q2.	What is the Interview to Hire Ratio?
Ans.	The interview-to-hire ratio measures how effective the hiring process is. It shows how many interviews recruiters conduct compared to the number of hires they make within a specific period. This ratio helps companies evaluate their hiring success, assess the selectiveness of their hiring process, and determine how many interviews they need to make a successful hire.
Q3.	What are the qualities of a good employee?
Ans.	A good employee reliably completes tasks on time and addresses problems as they arise.
Q4.	How can the quality of hire be measured effectively?
Ans.	To measure it effectively, you should first establish key indicators. Following this, set clear goals for each role. Then, implement a strong onboarding process. Finally, train managers to support and motivate new hires.
Q5.	What is the role of surveys in measuring the quality of hire?
Ans.	Surveys like hiring manager satisfaction and employee engagement surveys can provide valuable data for measuring the quality of hire. Even though they may contain some level of subjectivity.