In recruitment and business statistic circles, the term quality of hire is popular as of late. Many firms are discovering new methods to track and quantify this data.
One of the most important ways for a business to gather these statistics is by tracking the source of applicants. This white paper by Indeed should be required reading for recruiters and anybody who does recruitment advertising. The article stresses the importance of quantifying your applicants based on source. A quick comparison of average applications from Craigslist, Monster and Career Building paints a pretty clear picture of why the later two are in decline (provided by Craigslist though). Craigslist provides far more average page views for a fraction of the cost. Specialized job boards however are doing quite well in the recruitment advertizing market. To track your hiring metrics you need a feature in your applicant tracking system. If you still get resumes via email then you can tack them via a simple spreadsheet as well. Once a company has a good grasp of its recruitment statistics, the next step is too compare them with quality of hire metrics.
Quality of hire is a broad term but it can be any number that compares the hiring source, job expectations or qualifications with eventual results. For example Company Z hired 200 employees in 2011. Of those 100 employees only 50 stayed on through a full year. In that particular snap shot, the quality of hire would be 50% for the entire recruitment process. However that is only one simple method of evaluating quality of hire. Another method might compare quality of hire of external versus internally referred applicants. A company could even compare the quality of hire between recruitment from different colleges, staffing vendors or job posting sites. These statistics could be used to create mathematical models predicting success of applicants based on some specific qualifier. Smaller businesses should note that a small sample size is not enough to make assumptions and that correlation does not imply causation. At the very least though, quality of hire metrics can help evaluate better spending on recruitment advertising.