Measuring the Quality of Hire

Measuring the Quality of Hire

In the rush to hire, you might not be thinking about how to measure the quality of hire; however, this key performance indicator is a critical way to measure your recruiting and hiring practices. Assessing how your hires work out can hep you figure out the places your recruitment strategy might need work. Bad hires are not only bad for business, they are very common. One Robert Half survey estimated that three in four managers have made one. Bad hires create wasted time, increased frustration and stress, as well as lower productivity. By measuring quality of hire, you can make sure your team is hiring the right candidates who will make a difference in your commercial real estate company.

Creating the Metric

Quality of hire can seem subjective but there are more objective frames you can use to get at this KPI. Collecting the data below from your existing employees will help you build your metric and knowledge. Once your have the KPI, you can evaluate how well your new employees are performing.

  • Productivity: In addition to existing productivity targets, you can look at how long it takes new employees to start hitting those targets
  • Tenure: Employees add more value to companies the longer they are working there. However, this metric can be negatively impacted by other factors than candidate quality, such as personal circumstances or a sub-par manager.
  • Job Performance: Look beyond the review on this one and consider how fast an employee is promoted and how they respond to new responsibilities
  • Employee Engagement: Survey employees, managers and peers to see how strongly motivated they are and how well they fit with your firm’s culture

Improving the Quality of Hire

Establishing the ways to measure your quality of hire is a great first step. However, you will need to also think about how to improve it as you move forward. Below are a few ideas of the ways your company can improve its hiring process.

  • Conduct a Skills Gap Analysis: High quality hires will have skills that align with your business’ needs and the long-term strategy. Looking at your existing team’s skills, you can identify any gaps and focus on recruiting people to meet this need. These new hires will be able to quickly make a difference and add value to your firm
  • Involve Hiring Managers and Peers in the Hiring Process: Hiring decisions should not be made without the input of the team they will be working with. The team will have the best insights into the skills and qualities required for a new hire to succeed. They also can help determine which candidates are bringing new and needed skills to their team.
  • Improve the Onboarding Process: Effective onboarding is critical to helping new hires become productive as soon as possible. This multi-step process will provide the resources and training for new employees to succeed in your firm. Going beyond the Day 1 welcoming event is critical to the onboarding process. This process should include follow-up meetings to make sure the employee has the training and support to make a difference.

If your firm lacks the time and resources to measure and improve the quality of hire, consider hiring a recruiter like Real Estate Executive Search. Our team has the skills and experience to hire the best candidate for every real estate role. We even provide two guarantees that you will be happy with the quality employees we help you hire.