The One Hiring Metric You Are Probably Ignoring
Most companies measure the success of their hiring efforts by tracking time to hire and cost per hire. The faster a vacancy is filled and the less it costs, the better the outcome. Or so it seems.
These are useful metrics, but they only tell half the story. A quick hire is not necessarily the right hire, and a cost-efficient recruitment process does not guarantee a strong return on investment.
There is a more meaningful metric that separates companies making short-term placements from those building high-performing teams. That metric is quality of hire.
Why Quality of Hire Matters More Than Speed or Cost
Hiring should not be about filling seats. It should be about bringing in the right people who will contribute to the business in a meaningful way.
Quality of hire measures the long-term impact of a new employee rather than just how efficiently they were brought into the business. It answers a far more important question: did this person make a difference?
Without tracking this, companies risk making recruitment decisions based on speed and cost alone, which can lead to a cycle of turnover, disengagement, and underperformance. A fast process is irrelevant if the hire does not work out. A cost-effective hire becomes expensive if they leave within a year.
How to Measure Quality of Hire
Quality of hire does not have a single formula, but there are clear indicators that reveal whether a hiring decision was successful. These include:
Productivity in the First Ninety Days
Every new hire needs time to adjust, but high-quality hires ramp up faster, take initiative, and begin contributing to their role and the business early on. Measuring their productivity in the first ninety days can provide a strong indication of whether they were the right choice.
Consider:
• Are they meeting or exceeding expectations?
• Have they taken ownership of projects or responsibilities?
• Are they proactively identifying challenges and opportunities?
Retention and Career Progression
A successful hire does not just stay in the role. They engage with the business, develop their skills, and contribute to long-term success. Retention is important, but career progression is an even stronger indicator of quality.
Consider:
• Has the hire remained engaged and motivated?
• Have they taken on additional responsibilities or been promoted?
• Do they actively contribute to a positive and productive team culture?
Impact on Business Goals
A high-quality hire will make a measurable impact on the business, whether through revenue growth, innovation, operational efficiency, or leadership. Their success should be linked to broader company objectives rather than just their individual performance.
Consider:
• Have they helped the company achieve key targets?
• Have they improved collaboration, processes, or customer experience?
• Would the business rehire them without hesitation?
The Cost of Ignoring Quality of Hire
A slow hiring process is frustrating, but hiring the wrong person is far more costly. Studies estimate that a bad hire can cost a company up to three times the employee’s annual salary when factoring in lost productivity, disengagement, and the cost of replacing them.
Businesses that prioritise quality of hire build stronger teams, reduce turnover, and create a culture where people want to stay and grow. This leads to higher performance, better collaboration, and ultimately a more successful company.
Rethinking Hiring Success
Too often, hiring success is defined by efficiency rather than impact. But if a new hire is not productive, engaged, or making a difference, does it really matter how quickly they were hired or how much the process cost?
Companies that measure quality of hire move beyond transactional recruitment and build long-term success. They are not just hiring employees. They are hiring future leaders, innovators, and high performers.