HIRING FOR SUCCESS

IMPROVING ORGANISATIONAL PERFORMANCE THROUGH BETTER

QUALITY RECRUITMENT

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ABOUT THE REPORT

• Hudson RPO and the HRO Today Institute conducted a global benchmarking survey of quality of hire measurement practices• Surveyed talent leaders and hiring managers at 246 companies of all sizes globally• Final report will be officially launched on 30 May 2013

THE SURVEY

Other(non-profit,gov’t, etc.)

20%

80%

Commercial/Private sector

company

47% 35% 18%

$50M-$499M

27%

>$50M30%

<$5B27%

$500M-$5B27%

Increased productivity in operations roles

“How much more does a high performer generate annually than an average performer?”

Increased profit in general management roles

Increased revenue in sales roles

40%

49%

67%

THE RIGHT TALENT IMPROVES BUSINESS PERFORMANCE

Source: McKinsey, War for Talent, Top 200 survey – 5,679 respondents

Top-QuintilePerforming Companies

Mid-QuintilePerforming Companies

“Compared to our competition, our talent pool is much or somewhat stronger”

Average annual percentage return to shareholders

22%

13%

61%

38%

Top-QuintilePerforming Companies

Mid-QuintilePerforming Companies

THE RIGHT TALENT IMPROVES BUSINESS PERFORMANCE

WHO IS MEASURING QUALITY OF HIRE?

WHO IS MEASURING QUALITY OF HIRE?

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WHO IS MEASURING QUALITY OF HIRE?

• Almost all organizations surveyed believe quality of hire is important but less than one third are actually measuring it

• Just 60% of organisations that measure quality of hire have been doing so for less than two years so it seems to be a developing practice

• Most organizations surveyed are measuring quality of hire across all role types using the same measures

• There is an argument to suggest better organizational returns would be achieved by measuring quality of hire across a smaller number of roles, but roles which have a more critical business impact

WHAT MEASURES ARE BEING USED TO DEFINE QUALITY?

DEFINING QUALITY OF HIRE

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DEFINING QUALITY OF HIRE

• Employers must translate their definition of quality into clear and measurable criteria

• These criteria should be relevant to the organization and role type – a single measure of quality may not be practical

• Companies should consider other metrics such as:

- Financial metrics i.e. revenue or profit per employee, revenue growth

- Customer metrics i.e. feedback, retention rates

- Staff metrics i.e. engagement, retention

- Product & service innovation

WHAT HAVE YOU FOUND AS THE KEY

CHALLENGES OF DATA COLLECTION?

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CHALLENGES OF DATA COLLECTION

• HR Information systems not up to the task

• HRIS and ATS are often not integrated sufficiently

• HRIS and ATS often not integrated with financial systems

• Systems generally have a lack of compliance among users

• Insufficient resources to do the job

MEASURING DOES IMPACT QUALITY

FACTORS THAT IMPACT QUALITY OF HIRE

REGIONAL COMPARISON

HURDLES TO IMPROVING QUALITY OF HIRE

HUDSON RPO’S 7 STEPS TO IMPROVE QUALITY OF HIRE

1. Create a compelling business case 

2. Identify and understand business-critical roles

3. Determine the most relevant metrics for these business critical roles

4. Collect and analyse the data, working cross divisionally

5. Report your findings and recommendations to the business and seek their support for required changes

6. Take action to drive required changes !

7. Review the program annually

Register to receive the report:

http://HudsonRPO.com/Quality

Contact: kimberley.huddle@hudson.com