Hiring the wrong person can be a very expensive mistake. Consider the wasted cost of recruiting, selecting, onboarding, and training that hire, not to mention the negative impact on co-workers and customers. Then think about having to start the hiring process again to find the right person.
Hiring mistakes are not uncommon; the latest IBM WorkTrends™ survey reveals on average 39 percent of recent hires would not be rehired.
In an attempt to reduce these costly mistakes, organizations have turned to statistics and metrics that assess the effectiveness of hiring processes. However, in the face of an overabundance of numbers, knowing which metrics are most important can be a real challenge. Fortunately, new analyses from the IBM Smarter Workforce Institute can provide some guidance.
For more hiring metrics, download the full IBM Smarter Workforce Institute white paper: The secret to reducing hiring mistakes? It’s in metrics.
Which metrics are most commonly used?
The first point to note is that one in ten HR leaders and hiring managers say their organization does not assess the effectiveness of their hiring process in any way. Not using metrics at all represents a potential missed opportunity to optimize hiring processes.
Of those organizations that are taking positive steps to evaluate their hiring processes, the most commonly used metrics focus on the quality of the candidate—six out of ten HR leaders and hiring managers reported using quality of hire (e.g., performance appraisal ratings, employee-organization fit, etc.). As shown in Figure 1.
Figure 1: Which metrics do organizations use to assess hiring process effectiveness?