Measuring quality of hire (QoH) is somewhat elusive, but critical if a company wants to know if its sourcing, recruiting, assessment, and hiring programs are working properly. Without it, implementing a raising-the-talent-bar strategy become problematic. In this article I’d like to focus on some core issues involving QoH, and offer an idea on how to measure it both pre- and post-hire.
Let’s get started by first defining Quality of Hire (QoH). In an ERE article last year, I proposed this as a basic definition: how well a new person meets the performance needs of the job using the following 1-5 yardstick:
Level 1.0: Underperforms on all core performance requirements of the job.
Level 2.0: Reasonable match on most job needs, but needs extra management, direction, or coaching to meet the basic performance standards.
Level 2.5: Average performance. Meets basic requirements of the job with a normal degree of management coaching and direction.
Level 3.0: Solid performance. Meets significant performance requirements of the job on a consistent basis with minimal management direction and support.
Level 4.0: Consistently exceeds significant performance requirements of the job on measures of quality and/or quantity.
Level 5.0: Far exceeds significant performance requirements of the job on a consistent basis.
While typical interview and assessment tools can differentiate between above and below average performance, they don’t do too well in determining if someone is a Level 3, 4 or 5. Traditional job descriptions are part of the problem, not the solution, since they emphasize skills rather than performance. Generic competency models are similarly flawed, since they don’t adjust for the actual job requirements nor any unusual circumstances involved. Behavioral interviewing works to some degree by adding structure to the interview and reducing emotional bias, but is not specific enough in measuring variations in good performance. While these tools are adequate for separating the good from the bad, they’re far less effective for measuring QoH.
To more precisely measure pre-hire QoH, understand what drives performance and what causes underperformance. Assuming the person hired was appropriate on all traditional measures, a determination then needs to be made as to whether the person was hired for the right job, for the right manager, for the right company, and under the right circumstances. This type of multi-step approach offers a model for developing the means to measure pre-hire QoH. Here’s how: keep reading…