Quality of Hire

Quality of Hire

The High Cost of
Low Quality of Hire

Recruiting organizations are not delivering the high-quality hires their businesses urgently need. 1 in 5 hires are “bad hires” or are “regretted decisions,” and the turnover rate among new hires is much higher than that of all employees combined. This has financial cost—US$1.6 million in rework for every 1,000 new hires—as well as soft costs: damaged employment brand, recruiter morale, employee engagement, and Recruiting’s relationships with the line.

“About 50% of our middle to executive management will be retiring in the next five to ten years.” – Kim Nowell, Chief People Officer, Ingram Barge

 

Lower Quality
— And Slower, Too

Despite substantial investments in new recruiting tools and technologies, most recruiting functions have struggled to increase quality of hire. In fact, across industries and geographies, quality of hire has remained stagnant and even decreased in some instances. Worse still, it now takes 26 more business days to fill a role than in 2010. Slower recruiting increases the risk of losing talent to competitors, and the lost productivity costs over $8.55 million per 1,000 vacancies, on average.

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