Computational statistics and data analysis help companies understand hiring trends. The hiring process doesn’t necessarily end when someone accepts an offer. An employee’s performance and longevity in the company can inform front-end assessments and applicant screening tools.
Through a continued analysis of quality of hire, companies can continue to see year-to-year improvements.
Reducing attrition and retaining high-quality employees is one area in which data from a quality of hire report card can show a significant impact. In addition to being as productive as possible, companies want employees who will stick around. As previously pointed out, hiring is a time-consuming and expensive investment. The average cost to hire of a new employee is roughly $4,500. For every 10 people hired, companies shell out an additional $18,000 in attrition-related costs. The first 90 days of employment are critical. If an employee reaches the three-month mark, chances of them staying in the job for at least one year go up dramatically.
A company with quality of hire controls can also raise the talent bar. The tradeoff to higher standards is having to source more people for the job. But by casting a wider net, the employees your company does catch will perform better and likely stay longer.
The more companies learn about employees and their on-the-job performance, the better equipped they’ll be to develop recruiting and hiring strategies. Companies can forecast the impact employees have on their future and more easily adapt to changes in the labor market by making quality of hire evaluations a rule, not exception. In the end, high-performing employees lead to better business results. Assessing quality of hire could be the key to unlocking the potential for future company-wide success.