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  • Writer's pictureAJ Cheponis

How To Measure New Hire Quality and Performance

Maybe you’ve read the SHRM article hailing quality of hire (QoH) as the “Holy Grail of recruiting.

According to research from LinkedIn, quality of hire tops the list of useful performance KPIs and is a priority for 40% of organizations worldwide.

The struggle for many is how to define the measurement.

How to define KPIs

A year and a half ago, we started putting metrics for success in place before a position was opened. We asked hiring managers to identify four to five things an employee would be able to achieve after 90 days of employment. At the 90-day mark, the hiring manager evaluates the employee against those predetermined metrics and provides insight about the employee’s growth, leadership potential, and impact.

By analyzing performance metrics and hiring manager satisfaction, you can start to see patterns in what contributes to a successful new hire.

We’re sharing with you the exact templates we use to establish and measure those performance metrics.

How To Use the Templates

When you're getting ready to propose a new hire, share the New Hire Needs form with the hiring manager so they can outline what will be required of an ideal candidate.

Using The New Hire Needs Form

The hiring manager should start by outlining the key work areas this employee will be involved in and which they will directly own. Concrete metrics that will determine an individual's success in the role should be determined, as well as milestones they might hit along the way.

Then key skills the employee will need should be identified, with careful consideration as to whether this skill is a "must-have" or a "nice-to-have." If a skill is preferred or teachable, the hiring manager should specify who will be responsible for developing the employee and establish a timeline for training.

Finally, the hiring manager should include any additional considerations, such as whether they're trying to create diversity of background, viewpoint, or behavior on the team or any soft skills that would lend itself to the role.

Once the form is completed, the hiring manager should submit it to human resources or the staff recruiter.

The recruiter should then schedule a search launch meeting with the hiring manager. This meeting allows the recruiter and the hiring manager to align on what an ideal candidate looks like. The recruiter should ask questions such as:

● What is this person the CEO of?

● If you were to prioritize strengths and soft skills, which 2-3 would be most important?

● What kind of experience are you looking for? (i.e., direct experience or relevant experience)

● What questions do you want me to include on the phone screen?

● Is there anything you have to know about a person before you want to talk to them?

● Who's going to be involved in the interview process?

● What will the interview process look like for this candidate? (i.e., Will there be an exercise or skills test?)

This is also the time you'll want to finalize the Job Target for this position. (A Job Target outlines the behavioral traits and cognitive requirements that will lead to success in the role. It leverages science to make the best hire, rather than relying on resume and experience alone.)

Once A Hire Is Made

After the NHN form is completed and the search is launched—before the 90-day mark for a new employee—there's still work to be done. We encourage hiring managers, once a position has been filled, to revisit the NHN form and make sure everything still fits. If it doesn't, we ask them to revise the NHN to align with the changed expectations for the role. Once the needs are updated, or if the needs remain the same, hiring managers are encouraged to use it transparently with their hire to make sure they understand the expectations that have been set and what they'll be accountable to during the 90-day period.

After the hire is made, the HR or recruiting team should conduct a post-mortem on the search. Some questions to consider are:

● What did we do in that search?

● What are 1-2 things we did differently?

● What are our takeaways?

● What did the hiring manager do well that we could teach other hiring managers?

● What was our time to hire on this?

● What did we do poorly?

Using The 90-Day Performance Evaluation

At the 90-day mark, HR should send the hiring manager the performance evaluation form. This evaluation should be filled out as honestly as possible.

Once completed, HR should assess the evaluation and consider the following questions:

● If the NHN was not completed prior to making this hire, did that impact the performance of the individual or our ability to successfully measure their performance?

● Was this employee a good fit for our Job Target or not? Did that impact performance?

In addition, managers should follow up on the results of the evaluation. Some questions to consider are:

● If a new hire exhibits leadership capabilities, how can you support them in their professional development in this area?

● Are you aligned on what their career aspirations are at this point? This is a good time to schedule a quarterly career conversation to support your employee in their professional growth.

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How to measure new hire quality and performance

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