Pre-Hire Metrics

The data that you gather during the pre-hire process can help you learn more about the quality of applications you receive and the efficiency of your hiring processes. Pre-hire metrics also help you make better decisions when extending employment offers to candidates.  

One way to explore the pre-hire process involves examining the yield ratio from different recruiting channels. It is a metric that will help you track where your best hires are coming from, be that social media, referrals, or job boards. For instance, if you are seeing an influx of quality candidates from LinkedIn, then you know you should devote more resources to that medium.  

Candidate assessment scores are another great pre-hire metric. Use cognitive or personality tests to gain insight into a candidate’s potential fit for the role. These scores can help predict job performance, cultural fit, and how well a new hire will adapt to the company’s environment. Although these assessments can’t tell the full story, they provide useful data in predicting your hire’s quality. 

We also recommend tracking time-to-fill, which measures how long it takes your team to fill a vacancy and can indicate the efficiency of your hiring process. While you want to fill vacancies quickly, it’s important not to rush through the hiring process just to get this number lower. Balance the desire for speed with the need for quality candidates.  

Early-Stage Employee Metrics

The first year of your relationship with a new employee marks a critical stage in the hiring journey. You need to carefully track each new hire’s performance and productivity to ensure that they are a quality addition to the team.  

Time to productivity is a data point every HR team should be tracking. It measures how long it takes for a new hire to become fully productive and integrated into your team. In simpler terms, you are tracking how much time passes before a person can operate independently within their role. Shorter times to productivity often indicate successful onboarding and strong candidates. 

You’ll also need to monitor your company’s first-year attrition rate. If many people are quitting before the end of their first year, it could indicate potential issues with your hiring process. Employees may not be receiving adequate support or might be mismatched with their roles. Individuals who feel disconnected from company culture may also be at a greater risk of quitting within the first year.  

Once you’ve hired someone, it’s important that you consult with their direct supervisor and the hiring manager to see how the employee is doing. Use the hiring management satisfaction score to determine the effectiveness of the hire in terms of skills, cultural fit, and early-stage performance.  

Long-Term Performance Metrics

As an HR leader, you are tasked with playing the long game. You have to look beyond an employee’s first year on the job to measure the overall quality of each hire. Tracking employees’ performance over time gives a clear view of whether your hiring decisions are contributing to the company’s success. Regular performance reviews can reveal if new hires are excelling or if they are consistently performing at (or below) an average level. 

We also recommend measuring promotion velocity, which calculates how quickly a new hire moves through the ranks. High-quality hires tend to be promoted more quickly as they demonstrate the ability to grow within the company. The metric can provide insight into how your hiring strategies are supporting the company’s long-term succession plans.  

Your HR team should also track revenue per employee, which assesses an employee’s contribution to the company’s financial success. While it’s easier to track this metric for revenue-generating roles like sales, you can use it to obtain valuable insights for other departments.  

Lastly, it’s important to explore an employee’s lifetime value. Doing so involves evaluating their total contribution during their time with the company. You’ll need to evaluate productivity, innovation, and overall impact on the team. High-quality hires typically have substantial lifetime value because they make long-term contributions to the business and may even step into new roles during their tenure.  

Predictive Analytics Models

Machine learning and predictive analytics tools can help you forecast the future performance of candidates. By analyzing past hiring data, your business can identify traits and patterns that predict a successful hire. These insights allow you to make more data-driven hiring decisions. 

However, it’s important to note that predictive models can sometimes introduce bias if not carefully managed. You must constantly monitor and refine these systems to mitigate the risk of biases.  

360-Degree Feedback Systems

A 360-degree feedback system provides a big-picture view of an employee’s performance by gathering information from multiple sources. You might include feedback from peers and managers, quantitative performance data, and even surveys from customers. Altogether, it is a comprehensive approach that helps you gauge a person’s hard and soft skills.  

The major downside to the 360-degree approach, though, is that it can be complicated to implement. You need an abundance of data from diverse sources to gain a holistic view of a person’s contributions to the business.  

Talent Pipeline Quality Analysis

A quality hire is one who grows with your business. A talent pipeline analysis tracks that progress. Your analytics model will track several indicators of talent pipeline quality, including internal mobility, succession planning, and the long-term potential of new hires. You can use that framework to evaluate whether candidates continue to provide value as they move into more senior roles.