Hudson RPO and the HRO Today Institute recently conducted a global benchmarking study on how companies measure quality of hire. Based on the research findings and discussions with organizations worldwide, Hudson RPO has identified six key steps to delivering a successful quality of hire program.
CREATE A COMPELLING BUSINESS CASE
Secure executive team support for a quality of hire program by demonstrating the commercial benefits this initiative could bring. In order to build the case, establish:
Use broadly accepted models to analyze financial impact. For example, studies show that high-performing sales people can create revenues 67% higher than their average-performing counterparts. Those in talent acquisition roles may benefit from partnering with finance to ensure a strong financial business case is developed. Better still, calculate some rough figures of the differences in sales performance between your own high and average performers. This prevents the exercise from being too theoretical and allows you to use real-life examples that everyone understands.
- Which roles within the organization are critical to driving the top line, client satisfaction and client retention?
- Which of these roles are regularly recruited? (It makes more sense to demonstrate a quality of hire model with a role that is recruited frequently.)
IDENTIFY AND UNDERSTAND BUSINESS-CRITICAL JOB FAMILIES
It is vital to determine which jobs have the most significant impact on organizational performance. Resist the temptation to measure everything at the outset. It is better to choose a smaller number of regularly recruited business-critical role families and implement a robust program, than to assess the entire organization with a raft of generic measures and risk diluting the benefits.
DETERMINE THE MOST RELEVANT METRICS FOR QUALITY OF NEW HIRES IN YOUR ORGANIZATION
Encourage debate about the best measures for each role family to ensure the most appropriate metrics are used. Ensure the data your organization chooses is high quality and incorporates multiple elements that validate one another. For example, a set of qualitative and quantitative metrics for a sales person may include financial measures, performance appraisal ratings, retention data and client feedback.
COLLECT AND ANALYZE THE DATA
Collecting data from multiple systems across recruitment, HRIS and finance will deliver the richest insights and consequently the greatest value. Using only data that can be easily produced by a single discipline limits the scope and worth of conclusions. When analyzing the data, be sure to draw conclusions that are statistically significant. Analysis may also help determine additional performance indicators that could be incorporated into the quality of hire program.
REPORT YOUR FINDINGS TO THE BUSINESS AND MAKE SPECIFIC RECOMMENDATIONS FOR CHANGE
To understand the implications, present the key findings to people who are sufficiently senior and can influence change in the way things are done. Be sure to have a clear plan supporting the necessary changes as well as an estimate of the resources needed and investment required.
TAKE ACTION AND REVIEW THE PROGRAM ANNUALLY
Once you know what is influencing your hire quality, you can take concerted action to replicate this in all hires. Be prepared to challenge the status quo and seek external advice and help as needed. Don’t think you need to do everything yourself. Document a specific project plan and keep people up to date on what is happening. Revisit your quality of hire program each year to ensure you are studying the right roles, using the best metrics, collating and analyzing the most appropriate data and driving real change as a result. Most importantly, revisit the business case and quantify and report the benefits the program has delivered for your organization.
The report titled “Hiring for Success: Improving Organizational Performance Through Better Quality Recruitment,” defines quality in the workplace; the benefits of measuring quality of hire; the challenges of collecting data; and how to improve hiring processes and includes a case study demonstrating the commercial value of committing to a quality of hire program.
Learn how Hudson RPO can help your company deliver a successful quality of hire program. Contact us today.