So we all talk about Quality of Hire, but is there an ROI for quality of hire measurement? Turns out there is. A strong ROI.
But first, you have to measure it. Most recruiting leaders have a general sense of it, like “it could be better,” “it’s pretty good,” or “it’s not great.” But in our experience, your sense is often wrong. And if you’re in a large company, it’s almost always wrong. Do you truly know what’s happening with recruiters and hiring managers in other offices?
Too many things affect quality of hire. Until you’re measuring what it is and why it’s that way, you can’t improve it.
Get a Clear View
The first step is having a solid system in place to measure your overall Quality of Hire score and what is driving it. Easier said than done. Until now.
Survale’s always-on Quality of Hire solution is built for this. It automatically collects feedback from hiring managers and new hires. It tracks what happens after the hire and shows you where things stand.
Once you measure it clearly, then you can improve it.
Time to Productivity
If you’re measuring and improving Quality of Hire, you’re watching time to productivity. Better hires start contributing faster. That’s one of the biggest gains you can track.
If your current time to productivity is 90 days, and your hiring changes reduce that by 10 percent, that’s 9 days saved.
Here’s the math. If your average revenue per employee is $235,000 per year:
$235,000 divided by 365 is about $644 per day. Multiply that by 9 days. You get $5,800 per hire.
If you hire 100 people in a year, that’s $580,000 saved. Just from getting people productive a little faster.
New Hire Turnover
If you’re improving all parts of Quality of Hire including manager feedback and cultural fit, you’ll see a drop in new hire turnover.
That matters. Studies show around 40 percent of turnover happens in the first six months. Losing people early is expensive.
Let’s say the cost per hire is $4,700. If you hire 100 people and normally keep 70 by year-end, you lose 30. If you improve retention by 10 percent, you lose 7 fewer people.
That’s 7 people you don’t need to rehire. That saves $32,900 in hiring cost.
Now think about lost output. Each lost hire means lost productivity. If it takes 90 days to replace someone, you’re missing 90 days of work per person.
That’s 7 roles times 90 days. That’s 630 lost workdays. Multiply that by $644 per day and you’re looking at $405,000 in lost output.
Add the hiring cost and you’ve saved $437,900.
What You Can’t Always Measure
Better hires also change how teams work. People do better when they work with smart, reliable coworkers. They learn more. They stay longer. They push each other to be better.
You can’t always count this in dollars. But you’ll see it in the work. In how teams function. In how often problems get solved fast. These gains are real.
This is one reason Quality of Hire should be a core KPI.
Are You Measuring It?
Be honest. Do you have a process to track Quality of Hire?
Do you measure time to productivity?
Do you track turnover?
Do you gather manager feedback?
Do you ask new hires how things are going?
Do you tie this back to your hiring process?
If not, Survale can help. It does all of this automatically. It brings all the data together. It keeps everything up to date.
You don’t need extra spreadsheets. You don’t need reminders. You just get the truth. Every time you hire.
Run the Numbers
Survale has a free Quality of Hire ROI calculator. Drop in a few numbers. It shows you how much money is being lost or saved based on your current hiring quality.
You’ll see how even small changes lead to big returns.
Final Thought
Better hires mean better teams. Better teams mean better output. All of that adds up to saved money, stronger work, and better results.
So yes, there is a real ROI for Quality of Hire. And it starts with measuring what’s working and what’s not.
Track it. Improve it. Make it your top recruiting goal.
Survale makes it easy.
FAQs
How do you measure the quality of hire?
Use feedback from hiring managers and new hires. Track time to productivity and early turnover. Watch for trends.
How to calculate ROI on new hire?
Use your average revenue per employee. Multiply by days saved. Add savings from lower turnover.
What is the quality of hire KPI about?
It shows how well your hires fit the role and stay productive. It reflects the success of your recruiting.
How to measure the effectiveness of recruitment?
Look at time to fill, cost per hire, retention, and quality of hire. Use surveys and data to get a full view.
