Quality of Hire: Focus on What Matters
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Hiring misfires can lead to a ripple of negative effects and damage morale, productivity and the bottom line. But while everybody agrees on the importance of quality, agreeing on the definition of quality isn’t always as easy. View these slides to learn more about: -The stakeholders accountable for quality of hire and the roles each plays in hiring and retaining great talent -How to define quality of hire and what should and shouldn’t determine "good" -Methods and tools for better measuring quality of hire – and what that means for assessing candidates
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Quality of Hire: Focus on What Matters
- 1. March 4, 2020 QUALITY OF HIRE: FOCUS ON WHAT MATTERS
- 2. 2 QUALITY OF HIRE IS THE GOLD STANDARD #1 C-Suite, HR & Business leaders’ top metric for talent acquisition success Procurement’s top talent acquisition priority Source: Cielo, 2018 Talent Acquisition 360 research
- 3. 3 Quality of Hire is a group of meaningful measurements, unique to each company and role, which define success in hiring and retaining the right talent to fuel the business.
- 4. 4 MEASURING QUALITY OF HIRE Hiring Manager Satisfaction Reduced Attrition On the Job Competency Business Outcomes+ + + =
- 5. 5 MEASURING QUALITY OF HIRE Benefits • Highlights cases for immediate concern • Allows trends to be identified over time • Best done with a keep-in-touch program Weaknesses • Subjective • Easy to avoid or ignore • Only identifies surface concerns Hiring Manager Satisfaction Reduced Attrition On the Job Competency Business Outcomes+ + + =
- 6. 6 MEASURING QUALITY OF HIRE Benefits • Proven way to save money • Clear and objective results • Links with EVP programs • Highlights other areas requiring attention Weaknesses • Not a problem for all organizations • Impact of factors outside of Talent Acquisition Hiring Manager Satisfaction Reduced Attrition On the Job Competency Business Outcomes+ + + =
- 7. 7 MEASURING QUALITY OF HIRE Benefits • Rigorous, if done well • Forces optimization of recruitment processes • Baseline for further improvements Weaknesses • Relies on HR processes beyond TA • Timeliness – not immediate • Assumes a sophisticated and consistent recruitment process • Requires ongoing effort Hiring Manager Satisfaction Reduced Attrition On the Job Competency Business Outcomes+ + + =
- 8. 8 MEASURING QUALITY OF HIRE Benefits • Measures the ultimate value of recruitment • Aligned to specific business goals • Resonates with C-suite and investors Weaknesses • Must be function-specific • Requires a mature recruitment model • Not a perfect science Hiring Manager Satisfaction Reduced Attrition On the Job Competency Business Outcomes+ + + =
- 9. 9 EXAMPLE OF QUALITY METRIC CALCULATION Quality of Hire Indicators Job Performance Retention Rate Ramp Up Time Productivity Hiring Manager Satisfaction Employee Engagement Score Candidate Satisfaction Pre-hire Metrics Cultural Fit
- 10. 10 EXAMPLE OF QUALITY METRIC CALCULATION Quality Of Hire (%) = (Job performance + Ramp up time + Engagement + Cultural fit) / 4 Quality Of Hire (%) = (Indicator % + Indicator %) / # of Indicators example Quality of Hire Indicators Job Performance Retention Rate Ramp Up Time Productivity Hiring Manager Satisfaction Employee Engagement Score Candidate Satisfaction Pre-hire Metrics Cultural Fit Overall Quality Of Hire (%) = (Avg. Quality of Hire % + First Year Retention %) / 2
- 11. 11 THE JOURNEY FROM QUALITY HIRE TO QUALITY EMPLOYEE QUALITY OF HIRE QUALITY OF EMPLOYEE STRATEGY ATTRACT RECRUIT ONBOARD DEVELOP RETAIN DEPART Understand Your Top 5% Refresh Employer Brand Conduct Hiring Manager Workshops Build Talent Pipeline with Workforce Planning Review Assessment Process Review Assessment Technology Enhance Keep in Touch Programs for New Hires Survey for Hiring Managers Engage Hi-Po’s with Career Conversations & Succession Planning Develop Internal Careers Site Conduct Structured Exit Interviews Human Resources Talent Acquisition Hiring Manager Business Leader Accountable Responsible Consulted
- 12. 12 QUALITY OF HIRE QUALITY OF EMPLOYEE STRATEGY ATTRACT RECRUIT ONBOARD DEVELOP RETAIN DEPART Understand Your Top 5% Refresh Employer Brand Conduct Hiring Manager Workshops Build Talent Pipeline with Workforce Planning Review Assessment Process Review Assessment Technology Enhance Keep in Touch Programs for New Hires Survey for Hiring Managers Engage Hi-Po’s with Career Conversations & Succession Planning Develop Internal Careers Site Conduct Structured Exit Interviews THE JOURNEY FROM QUALITY HIRE TO QUALITY EMPLOYEE Human Resources Talent Acquisition Hiring Manager Business Leader Accountable Responsible Consulted
- 13. 13 THE JOURNEY FROM QUALITY HIRE TO QUALITY EMPLOYEE QUALITY OF HIRE QUALITY OF EMPLOYEE STRATEGY ATTRACT RECRUIT ONBOARD DEVELOP RETAIN DEPART Understand Your Top 5% Refresh Employer Brand Conduct Hiring Manager Workshops Build Talent Pipeline with Workforce Planning Review Assessment Process Review Assessment Technology Enhance Keep in Touch Programs for New Hires Survey for Hiring Managers Engage Hi-Po’s with Career Conversations & Succession Planning Develop Internal Careers Site Conduct Structured Exit Interviews Human Resources Talent Acquisition Hiring Manager Business Leader Accountable Responsible Consulted
- 14. 14 THE JOURNEY FROM QUALITY HIRE TO QUALITY EMPLOYEE QUALITY OF HIRE QUALITY OF EMPLOYEE STRATEGY ATTRACT RECRUIT ONBOARD DEVELOP RETAIN DEPART Understand Your Top 5% Refresh Employer Brand Conduct Hiring Manager Workshops Build Talent Pipeline with Workforce Planning Review Assessment Process Review Assessment Technology Enhance Keep in Touch Programs for New Hires Survey for Hiring Managers Engage Hi-Po’s with Career Conversations & Succession Planning Develop Internal Careers Site Conduct Structured Exit Interviews Human Resources Talent Acquisition Hiring Manager Business Leader Accountable Responsible Consulted
- 15. 15 THE JOURNEY FROM QUALITY HIRE TO QUALITY EMPLOYEE QUALITY OF HIRE QUALITY OF EMPLOYEE STRATEGY ATTRACT RECRUIT ONBOARD DEVELOP RETAIN DEPART Understand Your Top 5% Refresh Employer Brand Conduct Hiring Manager Workshops Build Talent Pipeline with Workforce Planning Review Assessment Process Review Assessment Technology Enhance Keep in Touch Programs for New Hires Survey for Hiring Managers Engage Hi-Po’s with Career Conversations & Succession Planning Develop Internal Careers Site Conduct Structured Exit Interviews Human Resources Talent Acquisition Hiring Manager Business Leader Accountable Responsible Consulted
- 16. 16 Track data • Baseline scores for future QOH calculation comparisons • Consider implementing additional initiatives & see how that effects your QOH scores Establish metrics • Review what data you currently hold & put measures in place to start capturing whatever else is needed • Agree on the QOH metric calculation suitable to your organization, business unit, or country Define quality • Understand your 5% • Conduct HR/HM workshops 3 STEPS TO IMPROVE QUALITY OF HIRE 1 2 3
Notes de l'éditeur
- ANNE According to our Talent Acquisition 360 research performed last fall, consistently delivering quality hires is the number one recruitment priority for C-level executives and business unit leaders. But our research also found that there is a significant gap between the importance the business places on delivering quality hires and their perception of talent acquisition’s ability to deliver. Business unit leaders, arguably your most important stakeholder, show the most concern over the quality of hires being sent to them by their talent acquisition team. Simply put, they are dissatisfied with quality.
- TOM So what is QOH? Definitions are hotly debated, however there are few elements that experts all agree upon It has to be based on meaningful measurements QOH data must be quantitative (or feasibly converted into numbers) & derived from business results. You probably have this data already, but it may not be in a form conducive to benchmarking & analysis so being able to QUANTIFY this data is critical & we’ll show you how later in the deck 2) It is unique to each company & role Segmentation is critically important. The quality measurements for your organisation’s graphic designers won’t be the same as the measures for the sales team. Similarly QOH measurements will be different per company 3) Defining Success in hiring & retaining the right talent The data you measure should point to your definition of a successful hire for that role and that must be completed in partnership with the business Without that link to the business, then those QOH measures become worthless
- TOM Based on conversations with existing and prospect clients the approach to measuring QOH typically falls somewhere in the continuum detailed on the slide Most organizations base Quality of Hire on whether the hiring manager is pleased with the recruiter’s performance and along with the answer to a single solitary question “would you rehire this candidate” asked at various times post hire. Many combine this data with attrition stats particularly 90-day and year one as these are typically readily available within any ATS or HRIS system. Some are able to quantify on job competency metrics and include that within their QOH calculations. While very few are able to link the QOH metric to overall business outcomes. Either way, it doesn’t matter where you are in the continuum, so long as you are on it and doing what you can to enhance & build out QOH definitions & measures for your business.
- ANNE START Consistently delivering quality hires is what hiring managers desire most from their talent acquisition teams. Tracking their satisfaction with new hires is a good way to determine how well recruiters are aligned with hiring managers’ needs and expectations. Frequently measure their satisfaction within a hire’s first year of employment and use what you learn to predict how well future hires will meet that manager’s approval Similar is Employee Satisfaction Employee satisfaction can be an indicator of the quality of work they perform. Studies have shown time and time again that people who are happier in their jobs are more engaged and effective in their roles. Hypothetically, a good way to assign a dollar sign to this lever would be to regularly gauge the job satisfaction of those responsible for finding new customers, and compare it with their performance over time. It is important that you gauge employee satisfaction frequently so you can correlate any changes in satisfaction with productivity, error rate, proficiency, etc. TOM ADDS For one healthcare client in the UK we’ve implemented an enhanced keep in touch programme for candidates during the first three months of their employment with the client. By getting candidates to rate their experiences at et intervals over the 3 month period we can gauge employee engagement & satisfaction levels which can be used to support QOH calculations not to mention enabling us to flag any pending flight risks.
- TOM STARTS In general, the longer an employee stays at your company, the more valuable they become. Conversely, if an employee leaves within the first six to twelve months (or worse, weeks), you lose the time and money you have invested in them, a percentage of their salary (typically somewhere in the range of 20% [4]) plus the costs to refill the role and of the vacancy. And those are just the most visible costs. Quality can be determined by the length of time an individual stays versus the average tenure of others who have held that position. And it may also be worth determining the average turnover rate of the department, role or organization to see how those stats compare. ANNE ADDS Best example is an insurance company in the UK whose first 6 month’s attrition among their customer service agents was far higher than the rest of the business… investigation into the reasons for this highlighted an inconsistent onboarding experience based on location along with tech set up issues which affected employee ability to perform the role and morale.
- ANNE STARTS ….. TOM ADDS For one client we supported on created a QOH process for their Sales function Example: Sales per Hire Although there are many variables in sales roles, they ultimately have the same objective: booking and generating revenue. Their deals obviously differ in size and scope, and opportunities vary per person, but you should not discount these measures because of those differences. Keep them logged and see how they look on paper. If the average is 10 sales per quarter, and one salesperson only has two sales, then you have something to work with. See if the deals that person did were more complex and more valuable to the company – or not. You can drill down from this number to get a better understanding, but it is almost always a good place to start. If there is a quality issue, take it back to the recruitment process and see what the variables were between the performing and underperforming hires.
- TOM STARTS It’s fair to say that measuring QOH on business outcomes is challenging & requires a large amount of collaboration & trust between HR & TA along with the wider business. So to try and attempt it organisations will require a mature recruitment model & agreement on calculation methods. We used it as a third year KPI for our RPO relationship with the Co-operative in the UK & the business outcome that the Quality of Hire metric was measured on was an increase in store profitability. Again given the socio-economic factors at play the % increase wasn’t the same for each store so we were set challenging, yet attainable targets for each store which our team went out and largely hit. However this is the nirvana of quality of hire measures and recognising that very few organisations are there right now, the next few slides will show you how you can quantify a QOH measure.
- ANNE STARTS Introduce the Quality Of Hire Indicators… HM Satisfaction
- TOM ADDS As we discussed earlier, part of the perceived problem with measuring and reporting on QOH is how to QUANTIFY it considering that it can be such a subjective topic at face value. However if you currently capture any of the QOH Indicators listed on this slide or variants thereof, then the good news is you can start quantifying the Quality of Hire. There are several formulas that you can use to calculate a quality of hire score, but it essentially comes down to producing the average of several indicators as the top gray box on the slide indicates. The example provided in the purple box is what we’d consider as providing a complete view on the quality of a hire as it combines new hire performance and productivity ramp-up time with an employee's engagement and cultural "fit“ However, we recognize that not all organisations have this Indicator data. So the point is, use what you have access to during your first iteration of the calculation and you can always evolve it over time as you get access to more data. In terms of calculating the score it’s advisable to convert the existing Indicator score into a percentage. This will be especially helpful when you’re calculating an average overall quality of hire score for your organization which combines the average quality of hire score from the first box with retention data. In terms of how regularly to complete the scoring this is dependent on how regularly you can get access to the QOH Indicator data. Job performance might only be reviewed 6 monthly or yearly for instance, so if you wanted to review QOH scores at 3, 6 & 9 months, the indicators you use to do that calculation may be different but will still provide you with a solid ground as to the quality of that hire.
- TOM There is no silver bullet solution to QOH, but there are several activities as detailed in the slide that you can do to make sure you are on the best path to “hiring and retaining the right talent to fuel the business”, to quote the last part of our QOH of hire definition. As you can see, these activities all involve Multiple stakeholders with the point being that HR or TA can’t drive these QOH conversation solo as it won’t be relevant to the business needs. Also looking at the arrows at the top of the slide, we have many interesting conversations with our clients around at what point in time the measure ceases to be a quality of hire measure, but a quality of employee measure as the influence we, as the Talent Acquisition team, have over new hire’s performance diminishes. Over the following slides we’ll go into a bit more detail on a couple of these activities which can help improve QOH.
- TOM: Looking at the Strategy pillar, we’ve completed the “Understanding your Top 5%” activity for several clients to help us reverse engineer what quality looks like. In partnership with the HR teams & Business Unit leaders, we interviewed top performers from every level of the organisation to find out: Why they joined Why the stay What it takes to succeed Source channel Career history/education We then translated the top performer characteristics that we discovered into new: Job descriptions Sourcing strategies Interview/assessment questions Within the Attract Pillar I think the key activity to consider is “What does good look like” workshops with Hiring Managers to understand the attributes, technical & operational experiences HMs are looking for when making a hire. While you have them as a captive audience it can also be beneficial to ask them their approach to career development along with potential growth opportunities within the team so that we, as TA, can provide this information to candidates to help demonstrate to them just how committed the business will be in making them a success. As always, its not all about the candidate selling themselves to us, we need to make sure we’re clearly presenting the business’s EVP and these workshops are a great way to baseline this information & to start getting high quality talent in at the top of the funnel.
- ANNE Propose to talk through the Objective, the How and the Outputs for 1 from each pillar? Or all of them?
- TOM As we move into what we’d consider the “Quality of Employee” continuum, where the power the Talent Acquisition team has over the outputs of that individual employee becomes less, we’ve identified some activities that if deployed can deliver significant benefits in terms of retention and fuelling business growth. Hi-Po Career Conversations Conducting scheduled HiPo & niche talent “stay” interviews to understand their desired career paths & ambitions is a great way to retain high levels of engagement & employee satisfaction within that target audience which will ultaimtely help drive business outcomes. Talent Acquisition can get involved in this process when this data is fed back into succession planning exercises and this is what we’ve done for many clients previously. By finding out why these individuals joined, what motivates them to stay, what their personal objectives are & in what timeline, along with what further support they need from the business to help them get there, we as an HR & TA function are provided with great data that we can use to re-model sourcing & employee management activities on. It also empowers us to be able to move great talent around within the business rather than lose them to a competitor . Developing an Internal Careers Site Again this activity has a retention lens. In order to retain your workforce & the good workers within it, organisations should promote internal opportunities openly and remove the hurdles that often prevent employees from applying for internal jobs. One way to do this is to develop or redevelop existing internal careers site and to provide authentic employee development videos or blogs highlighting how the business supported them with that including areas in which improvements could be made after all, no-one or thing is perfect and employee videos need to be realistic. If you set the tone right in these videos and provide employees with a simple way to apply you’ll see a lot less regretted leavers within the business, an increase in engagement & ultimately an increase in business outcomes.
- ANNE Propose to talk through the Objective, the How and the Outputs for 1 from each pillar? Or all of them?
- ANNE