Measure quality of hire by tracking a composite of post-hire indicators: performance ratings at 90 days and one year, retention rate at 12 months, hiring manager satisfaction scores, and time to full productivity. No single metric captures quality alone — the combination gives a reliable signal of whether the recruiting process is delivering hires who succeed in the role.
The most commonly used inputs are: performance rating at first formal review (typically 90 days or 6 months), retention at 12 months, hiring manager satisfaction survey (collected 60-90 days post-hire), and ramp time — how long the hire took to reach full productivity. Some organizations add 360 feedback scores or promotion rates for longer-tenured employees. There is no industry-standard formula, but a weighted composite of two to four of these metrics is more reliable than any single indicator.
Segment quality of hire scores by sourcing channel, recruiter, job family, and interview panel to find patterns. If employee referrals consistently produce higher quality of hire than job board applicants for a given role type, that informs sourcing investment. If certain interviewers correlate with higher quality of hire outcomes, their evaluation approach can be studied and shared. If a specific ATS stage or assessment predicts performance, it can be weighted more heavily. This closes the feedback loop between recruiting decisions and business outcomes.
The main challenges are data availability and attribution. Performance data lives in the HRIS, retention data in payroll systems, and recruiting data in the ATS — integrating them requires either connected systems or manual data joining. Attribution is also complex: a hire's performance is influenced by onboarding, management, team dynamics, and business conditions beyond what recruiting controlled. The most practical approach is to track a simple, consistent set of metrics over time and focus on relative changes rather than absolute scores.
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