Quality of Hire Metrics

24 04 2012

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.

Additional reading:

http://www.shrm.org/Research/Articles/Articles/Documents/Whitepaper_Quality_of_Hire.pdf






Bankruptcy Index

17 02 2010

In the spirit of the highly successful University of Oregon Index of Economic Indicators, I decided to start work on an Oregon Bankruptcy Index.

The goal of this index would be to provide a summary of the vast available economic data as it pertains to bankruptcy filing and bankruptcy risk in Oregon.

The method behind this index might gauge unemployment levels, interest rates, business loans, and other economic criteria.  The data I review and include will depend highly on how my econometric analysis from earlier posts turns out.  Data with a large correlation would be prime for more research and possible addition into the index.  A solid index of numbers might then allow for prediction of future bankruptcy filings.

The obvious benefit of this index could be for real estate companies, banks and investors.  The index might help gauge economic and legal/litigation risk levels.  After the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, bankruptcies went down significantly only to rise up slowly towards the current economic downturn.  Bankruptcy lawyers have learned the law and are now better at getting their clients though the new regulations with five years of experience against the 2005 legal changes.  The index might be able to include and factor in such changes in the regulatory environment.








That Pacific Northwest Life

Having all of the fun.

Hiking Photography

Beautiful photos of hiking and other outdoor adventures.

Business Analytics 3.0

Data Driven Business Models

Simple Tom

Some say I was born high. Others say i'm just simple :)

bhardwazbhardwaz

Knowledge and Happiness(K&H) multiples by dividing it. More you share, higher and bigger they grow.

Where's my backpack?

Romancing the planet; a love affair with travel.

Gen Y Girl

Twentysomething. Annoyed with corporate BS. Obsessed with Gen Y. Not bratty. Just opinionated.

silkroadcollector.me

An International company that offers private antique art sales to clients around the globe.

redcatHR

all about Human Resources

Freedom (to) management

How to have an impact, gracefully, in the organizations of the future