How Quality Hires Contribute to a Company’s Overall Success – By Kristina Calder, PhD

The largest challenge faced by HR and Recruiters is finding a quality hire. Quality of hire is defined as the value a new hire brings to an organization’s long-term success based on their performance and tenure.

 Improving the quality of hire is the #1 priority for 2021/20221
 Only 33% of talent leaders feel they are measuring quality of hires effectively 2

Considering the importance and value of quality hires, it is one of the most difficult metrics for talent acquisition teams to measure. Using both pre- and post-hire metrics are needed to effectively measure quality of hire and understand the effectiveness of your company’s hiring process. As CEO and founder of The Adler Group stated “Hiring for quality is fundamentally different than just filling positions. To do it right, you have to track performance metrics like quality of hire and return on investment”.3

Using a selection process to measure and record pre-hire metrics is strongly encouraged. For example, recording the candidates Science score (an objective measure of a candidate character traits required for the role), Effort score (a subjective rating from an interview score, previous training, experiences, skills for the role, etc.), and Fit score (the hiring manager/recruiters’ intuition on how they feel the candidate will fit within the team/organization). Remember that quality is
quantifiable; and using a 5-point rating system for each of these pre-hire metrics will be useful to compare against other candidates and to validate to the hires performance and retention.

A recent study of 1,300 Insurance Agents with pre-hire metrics (source, education level, previous insurance experience, psychometric character traits (POP™)) and post-hire metrics (job performance, retention) was conducted.  Warm sourced, education level with a Bachelors/Associate degree, previous insurance experience, and high ratings on the POP™ were correlated to job performance.

Findings from this study demonstrate the cumulative effects of these pre-hire metrics on performance:

 $49,500 higher annual sales in hires with all 4-pre-hire metrics

Not only was performance positively impacted, but retention in this group was 48% higher when compared to those with none of these metrics. If 20 low quality hires were replaced with 20 high quality hires, then the client could expect to see an ROI of $990,000 in additional sales and an increase in retention numbers. Understanding what pre-hire metrics impact on organizations overall performance and retention is an integral part of the talent acquisition process.

For more information about talent metrics and the selection process in hiring quality candidates email me at [email protected]

1 (Jobvite, 2021)
2 GRT16_GlobalRecruiting_100815.pdf (
3 The Holy Grail of Recruiting: How to Measure Quality of Hire (