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According to research by Hudson RPO, firms are often recruiting the cheaper and more average candidates rather than those who arehigh performing and most suitable. Difficulty measuring quality of hires is reported as the main barrier to recruiting the best applicant, with cost and time also listed as recruitment hurdles.
According to Hudson RPO Global Leader Kimberley Hubble, “all hiring managers know that there are considerable differences in productivity between average performers and high performers, which means quality of hire is imperative for businesses. Yet our study shows that 69% of respondents are not measuring quality of hire at all.”
A study by consulting firm McKinsey & Company highlights the differences in productivity between average and high performers: a 40% increase in productivity in operations roles, a 49% increase in general management roles, and a 67% increase in sales roles, when high performance candidates have been employed.
The benefits of hiring higher performing candidates are outlined in the research:
- 62% of companies measuring quality of hire recorded a greater than 25% improvement in new hire retention,
- 85% of companies measuring quality of hire believe that doing so has had a positive impact on hiring quality.
Manuel Marquez, Chairman and CEO of Hudson Global., added that “quality of hire remains the most elusive talent metric for many organisations. Yet it is also the most important metric for driving sustained business success. Today’s leaders must not leave quality hiring to chance if they want to create competitive advantage for themselves well in the future.”