Quality of Hire
Definition
A composite metric measuring the value a new employee brings, typically assessed through performance reviews, retention rate, and hiring manager satisfaction.
Quality of Hire is the ultimate measure of recruiting success, but it's also the hardest to quantify. Common components include: 90-day performance ratings, time to productivity, retention at 12 months, and hiring manager satisfaction scores.
Most organizations struggle to measure Quality of Hire consistently because it requires data from multiple systems (ATS, HRIS, performance management). AI-powered people analytics tools are closing this gap by connecting pre-hire signals to post-hire outcomes.
Improving Quality of Hire often means investing more upfront — structured interviews, skills assessments, and reference checks — which may increase Time to Fill but delivers better long-term ROI.
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Related Terms
Cost per Hire
The total cost of filling a position, including advertising, recruiter time, tools, and agency fees divided by the number of hires.
Time to Fill
The number of days between opening a job requisition and a candidate accepting the offer.
Candidate Pipeline
The structured sequence of stages a candidate moves through during the hiring process, from initial contact to offer.