This document discusses measuring the quality of new hires. It begins by noting that top performers can be worth much more than average performers. It then discusses how the quality of hires is often thought to be immeasurable but can actually be measured by defining quality for each role and developing standards. It provides examples of measuring skills, experience, motivation and fit. It suggests ways to improve quality of hire like clear job descriptions and effective assessments. Finally, it discusses using assessments to predict performance and continuously refining the hiring process.

1. Quality of Hire: Myth or Measurement?
#talentmindset

2. Welcome & Introductions
Kevin Wheeler
Founder and Chairman the Future of Talent Institute
Kevin started FOTI five years ago out of his
passionate belief that organizations need a
more powerful and thoughtful architecture
for talent than they have.
Kevin is a globally known speaker, author,
teacher and consultant in human capital
acquisition and development, as well as in
corporate education.
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3. Setting the Stage
• “One top-notch engineer is worth 300 times or more than the
average engineer.”
• “We would rather lose an entire incoming class of engineering
graduates than one exceptional technologist.”
Alan Eustace
Senior Vice President of Engineering and Research
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4. Some Facts
• Measures of output quality reported in 20 studies of production
workers found:
– The Value of Top Third performance was 1.7 times the value of average
workers.
– The DIFFERENCE between the annual value of Top Third vs. Average
performers was AT LEAST 40% of their salary.
Schmidt & Hunter

5. Can We Measure Quality?
• The Myths
– We’ll know it when we see it.
– You can’t quantify it.
– The same factors apply to every position.
• The Reality
– It can be described by every hiring manager and fellow employee.
– It can measured, tracked and improved.
– Every position needs a specific combination of factors.
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6. Why, What and How?
Why? What?
Input

7. Factors that Impact Quality

8. Example 1:
Silicon Valley Internet Company

9. Example 2:
Nuclear Engineer

10. Measuring Quality
#talentmindset

11. Steps to Measuring Hire Quality
1. Establish a definition of quality for each position.
– Determine what performance outcomes are important and that make a
business difference.
– Determine what characteristics makes up hiring manager satisfaction.
• KSAs
• Fit
• Motivation
• Experience
2. Develop standards to measure quality of hire.
– Define which competencies/criteria are most important to those
outcomes.
– Decide levels of KSAs, motivation, fit and experience that are needed to
achieve performance outcomes.

12. Defining Quality for Each Position
Measures
• Tangible-outcome positions
– Gross sales
– Number of proposals to closes
– Customer satisfaction
– Customer additions/losses
– Number finished/assembled/etc. per established timeframe
– Time to complete a certain amount
• Intangible-outcomes positions
– Jury-of-peers evaluation
– Time to productivity
– Number of rejections or amount of rework
– Customer/team satisfaction

13. Measuring KSAs
• Performance-Based Tests:
– Tests objectively scored for productivity, customer service, and sales.
• Risk-Based Tests:
– Tests objectively scored for safety, financial, sobriety, and civility risk.
• Behavior-based Interviews:
– Guides with questions, probes and rating anchors used by trained hirers
whose ratings have been calibrated and skill checked.
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14. Measuring Experience
• Job Knowledge Tests:
– Multiple choice tests objectively scored for technical / functional
knowledge critical to value.
• Years of Practice
– Measures of time, especially if at significantly greater levels of responsibility
or complexity.
• Peer Reviews
– 360 degree feedback, anonymous feedback.
• Referrals
– Recommendations from trusted partners.
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15. Measuring Motivation
• Only subjective measures available:
– Interviewer opinion of candidate’s enthusiasm, opinion on level of
engagement with organization's ideals and goals.
– Assessment of whether active or passive candidate.
• Active may be more motivated.
– Number of times candidate applied.
– Team/Panel judgment.
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16. Measuring Fit
• Managerial Simulations
– Inbox and role-play simulations that feature realistic managerial and
executive challenges evaluated by trained assessors guided by rating
anchors.
• Team/Panel Interviews
– Crowd sourced opinion about candidate based on group interview and
subsequent discussion.
• Cultural Fit Tests
– Some tests available.
– Personal Job Fit assessment or others.
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17. Example:
Sales Lead Position
• Average (expected) performance outcomes
– Meets sales targets three quarters out of four
– Maintains 98% of customers
– Adds at least four new customers per quarter
– No interpersonal conflicts or issues with team
• Tenure average: 16 months
• Hiring manager satisfaction: 3.5 out of 5

18. Ways to Improve Quality of Hire
• Clear understanding of manager’s expectations & needs.
• Clearly/objectively defined job descriptions.
• Targeted sourcing.
• Clear assessment criteria.
• Effective assessments.
• Post-hire measurement.
• Feedback.

19. Predicting New Hire Quality
#talentmindset

20. Ability to Predict Performance
Management Position
Ability to Predict Performance
Resume review Performance & Performance & Performance &
+ Risk-based tests Risk-based tests Risk-based tests
Typical + +
interview Behavior-based Behavior-based
interviews interviews
+
Simulations

21. Summary of the Process
Identify top
Determine Use predictors of the Measure new hires
performing
competencies & skills competencies to and correlate to Continuously refine
incumbents by
position-by-position assess candidates assessment
position
Use measures of Use tests,
Measure new hires
outcomes, Use multi-rater simulations and
against top
manager satisfaction process behavior-based
performers
and team fit interviews
Determine
competencies that Train and monitor Measure manager
make a performance process rigorously satisfaction
difference

22. Q&A
#talentmindset

23. Thank you & learn more!
Download the complimentary whitepaper
Quality of Hire: Myth or Measurement
at PinstripeTalent.com
And, connect with us online.
#talentmindset

24. Save the Date!
Wednesday, February 15
Corporate Recruiting:
How Does Your Organization Measure Up?
Guest Presenter:
Kim Lamoureux, Principal Analyst for Talent Acquisition
at Bersin& Associates