The most important parameter in measuring the success of a company’s hiring process is the ‘quality of hire’ (QoH), says a recent study.
According to a report on hiring released by Wisdomjobs.com, over 80% of the companies see retention rate as the most important indicator of QoH. Only 29% feel their QoH measurement is effective, and 86% of the companies say they use pre-hire assessments for screening candidates. Over a hundred companies from various sectors across Hyderabad, Delhi, Mumbai, Bengaluru, Chennai, Kolkata and Pune were part of the study. They were quizzed on the metrics they employ to improve QoH.
Some of the metrics are performance of new hires, turnover and retention ratios, and satisfaction ratings by hiring managers to quantify the quality of their hires. The report further says that most companies make efforts to improve the quality of the candidates they hire by opening several channels of engagement. From social media engagement to employer branding, companies investing in various ways in improving QoH.
Background checks have also been used by companies to weed out fraudulent candidates. They also play an important role in helping improve the quality of their hires. According to the study, 54% of the companies believe background checks help improve their QoH.