Quality of Hire (QoH) is a metric used to measure the quality of new hires made by a company. It is used to measure the effectiveness of the recruitment process and to identify areas where improvements can be made.

Quality of Hire can be measured in different ways, some common methods are:

• Employee Retention Rate: the percentage of new hires who stay with the company for a certain period of time.
• Performance Metrics: how well the new hires perform in their roles compared to their peers.
• Manager and Peer Feedback: how well the new hires are perceived by their managers and colleagues.

The formula for Quality of Hire varies depending on the method of measurement used.

It’s important to track the Quality of Hire over time, compare it against industry benchmarks and historical data, to identify areas where the recruitment process can be improved. It’s also important to track the Quality of Hire by different segments, such as by different teams, positions, or locations, in order to identify where the problem is and take action to improve the Quality of Hire.

Quality of Hire is an important metric for companies, as it allows them to evaluate the effectiveness of their recruitment process and make decisions about recruitment strategies, budgets, and partnerships.

It’s also important to keep in mind that the Quality of Hire should be aligned with the business requirements and the needs of the end-users, a high Quality of Hire can indicate a strong recruitment process, but it can also mean that the company is not investing enough in finding the right employees or not investing in the recruitment process.