Quality of hire is the value a new hire adds to your company based on how much they contribute to your organization’s long term success in terms of their performance and tenure. The minimum baseline for a quality hire is that the value a person creates while employed at your company is greater than the cost of recruiting them. While quality of hire is mainly used as to measure how successful a new hire becomes, it’s also often used as a metric for the success of the recruiting function overall.
KPI Formula:
(Job Performance + Ramp-up Time + Employee Engagement + Cultural Fit) / N
N = number of indicators (in this case, N = 4)