What is Quality of Hire?
Quality of hire is a recruitment metric that evaluates the value a new employee brings to the organisation after being hired. It is typically assessed through a combination of performance reviews, hiring manager satisfaction, time-to-productivity, retention rate, and cultural fit. Unlike metrics that measure process efficiency (time-to-hire, cost-per-hire), quality of hire measures the outcome, whether the hiring process actually resulted in good hires.
Why it matters
Optimising for speed and cost alone can lead to poor hires that cost far more in the long run. A bad hire can cost up to 30% of the employee's annual salary when you factor in recruitment costs, training, lost productivity, and eventual replacement. Quality of hire is the ultimate measure of whether your recruitment strategy is working. Tracking it forces organisations to look beyond vanity metrics and evaluate whether the people they are bringing in are actually performing and staying.
How Teamtailor helps
Teamtailor's structured interview kits and data-driven pipeline help you make better hiring decisions from the start. Post-hire analytics and integration with HR systems let you close the loop between who you hired and how they performed.
