29 June 2010
US employers are now starting to increase their focus on quality-of-hire metrics for recruitment, according to new research from US executive job board TheLadders.
In a lead article in US publication Workforce Week yesterday, TheLadders founder Alex Douzet said the company's research into the use of recruitment metrics had found, surprisingly, that there were still a number of US employers who had no metrics in place at all, to monitor their recruitment processes.
Among those that did, Douzet said, the focus still remained largely on the simpler process-based elements of recruiting such as time-to-fill and cost-per-hire.
He said while these basic measures were useful, the majority of employers still had no effective measurement of the "quality and business impact" of their recruitment efforts.
"Simply, they fail to measure the value that the new hires contribute to the organisation over time," Douzet said.
However, he said, a growing number of employers were gradually starting to introduce "quality of fill" metrics, and these metrics were becoming increasingly sophisticated.
TheLadders' survey analysed the five most common factors employers were gauging in measuring their quality of hire:
- Employee retention
- Performance evaluations
- The number of first-year hires who make it into leadership programs
- Employee promotions
- New-hire surveys
Douzet said a number of leading US employers were also using a relatively simple recruitment quality metric known as "net quality score".
This measured their recruitment effectiveness by taking the total number of hires in a year and subtracting the number of new hires that rated poorly in their first performance review, he said.
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