What if you could improve the quality of hire before you even created a job posting? By utilizing labor market data such as skills, compensation trends, and diversity insights, talent acquisition teams can lay the groundwork to improve quality of hire.
So, what is “quality of hire?”
Quality of hire is a measurement of the value a new employee contributes to a company. Assessing the quality of hire can take on different meanings based on the types of roles people fill. For example, quality of hire metrics for an employee in sales will be different than those of a software engineer, let alone a product management role. While metrics can be job specific, like achieving sales quotas or earning positive client feedback, they can also be relevant across occupations. For example, productivity levels, culture fit, job performance, and retention rate are all useful in measuring quality of hire.
But these measurements all take place post-hire. In order to make the most informed pre-hire decisions, you can use talent intelligence to:
If you’re not keeping up with changing skills, you’re not getting the people you need.
According to Lightcast’s 2022 report, the top 20 skills requested for the average US job have changed 37% over the last five years. So, while it’s necessary to be aware of current job skills, it’s crucial to understand the skills an employee needs to develop for the future. Organizations can use predictive skills data to forecast the skills required for their critical roles to make better hiring decisions.
A skills-based approach helps you craft optimized job descriptions that speak the same language as candidates. It’s important to advertise skill requirements to these candidates and let them know what they’re signing up for. Matching skill profiles with the right job title will attract the best people to your organization. And to top it off, companies who implement skills-based hiring have seen a 92.5% reduction in their mis-hire rate.
Know what you need to pay candidates before you launch job postings.
According to a recent report, 66% of organizations who list pay ranges for their open roles have seen an increase in overall “quality of applicants.” In order to advertise competitive salaries, track wage trends over time for your roles and monitor real-time job postings data. Salary benchmarking helps you match pay to job titles, making it easier to communicate with job seekers.
Compare markets to know where top candidates are for your open roles.
Market analysis allows your hiring team to understand the cost, availability, and sustainability of labor in any given region. Evaluate target markets using the most recent and relevant labor market data, and consider whether the locations are equipped to support your business goals. This analysis will inform your recruitment strategy to find the right people efficiently and effectively.
Reach a more diverse talent pool with equitable opportunities.
Diversity in the workplace is shown to boost creativity, create growth opportunities, and improve decision making. In order to attract candidates with an inclusive culture, you first need to set realistic expectations for your diversity goals.
Compare diversity with other similar businesses using DEI benchmarking that incorporates market, industry, and occupational level comparisons. Demographics data can help identify pockets of talent and provide an understanding of the diversity within a certain market or job.
Hiring quality employees begins with talent intelligence.
Set the table for improving quality of hire with skills, compensation, market, and demographics data. When you leverage talent intelligence prior to hire, you will not only attract the right people to your organization, but also increase employee engagement and retention in the long run.