5 min read

How to measure and improve your quality of hire metric

Picture of Compono Compono February 18, 2026

Finding the right person for a role often feels like a win, but the real test begins long after the contract is signed. The quality of hire metric is the ultimate North Star for talent acquisition, yet many HR leaders struggle to define and measure it accurately. By shifting focus from speed to long-term value, you can ensure your recruitment strategy actually drives business performance.

The problem with measuring recruitment success solely on speed

For years, recruitment teams have been judged on 'time to fill' and 'cost per hire'. While these metrics are helpful for operational efficiency, they tell you nothing about whether the person hired is actually any good at their job. You could hire someone in record time for a bargain price, but if they leave after three months or fail to meet performance targets, that 'efficient' hire becomes a significant financial burden. Recent industry data suggests that the cost of a bad hire can be up to 30% of the employee's first-year earnings. This includes lost productivity, recruitment fees, and the time spent by managers on re-training. To avoid these pitfalls, modern HR leaders are turning their attention to the quality of hire metric. It is the only data point that connects recruitment directly to the bottom line by measuring the value a new employee brings to the organisation over time. However, measuring 'quality' is inherently more complex than measuring 'time'. It requires looking at multiple data points across the first year of employment. At Compono, we believe that understanding the The Compono Culture, Engagement & Performance Model is the first step in recognising how individual contributions scale into organisational success.

Defining your quality of hire metric

Section 1 illustration for How to measure and improve your quality of hire metric

Quality of hire isn't a single number; it is usually an index of several different indicators. Because every business has different goals, your specific formula might look different from a competitor’s. Generally, a robust quality of hire metric includes performance ratings, cultural fit scores, and retention rates. To calculate it, you might take the average of these scores over a 6–12 month period. For example, if a new hire has a performance score of 80%, a cultural alignment score of 90%, and they are still with the company after a year (100%), their quality of hire score would be 90%. When you aggregate these scores across all new hires, you get a clear picture of how effective your sourcing and selection processes really are. One often overlooked component is the 'hiring manager satisfaction' score. By asking managers how happy they are with a new hire’s progress after 90 days, you gain qualitative insight that performance data might miss. This feedback loop is essential for refining job descriptions and ensuring that the talent you attract actually meets the needs of the team on the ground.

The role of work personality in hiring success

One of the biggest drivers of a high quality of hire metric is alignment – not just in skills, but in how a person naturally approaches their work. This is where understanding a candidate's work personality becomes a game-changer. When you hire someone whose natural tendencies match the requirements of the role, they are more likely to be engaged, productive, and stay longer. For instance, if you are hiring for a role that requires meticulous attention to detail and a systematic approach, such as a Financial Controller, you might look for The Auditor. On the other hand, a role that requires driving new initiatives and inspiring others might be better suited to The Campaigner. When people are working in ways that feel natural to them, their performance tends to be higher, which directly boosts your quality of hire scores. At Compono, we have developed tools that help you assess these traits during the recruitment phase. By using the People Intelligence Platform, you can identify the specific work personalities your team is missing. This prevents the 'culture fit' trap – where you accidentally hire people who all think the same way – and instead focuses on 'culture add' and functional alignment.

How to improve your quality of hire over time

Section 2 illustration for How to measure and improve your quality of hire metric

Improving this metric requires a shift from reactive to proactive hiring. It starts with the job brief. If you don't clearly define what 'success' looks like for a role, you can't possibly measure it later. You need to identify the key work activities that will drive results – whether that is The Evaluator's analytical rigour or The Pioneer's innovative problem-solving. Once you have defined the role, you need to look at your sourcing channels. Which job boards or referral programmes are producing your highest-scoring hires? Often, companies find that their most 'cost-effective' channels actually produce the lowest quality of hire. By reallocating your budget to the channels that deliver long-term value, you can significantly improve your overall recruitment ROI. Another critical factor is the onboarding experience. A high-quality candidate can quickly become a low-quality hire if they aren't supported during their first 90 days. Ensuring that new starters have clear goals, regular feedback, and a sense of belonging is vital. Compono Hire helps streamline this transition by ensuring that the insights gained during the assessment phase are passed on to managers, allowing for more personalised and effective onboarding.

Using data to predict future hiring success

The real power of the quality of hire metric lies in its predictive capability. Once you have enough historical data, you can start to see patterns. You might notice that your top performers in sales all share certain traits, or that hires who score highly as The Coordinator tend to have the highest retention rates in your operations team. This data allows you to move away from 'gut feel' hiring and towards a more scientific approach. Instead of hoping a candidate will work out, you can compare their assessment results against the profile of your existing high-performers. This doesn't mean hiring clones; it means understanding the underlying behaviours that lead to success in your specific environment. By consistently tracking these metrics and adjusting your strategy, you transform HR from a cost centre into a value driver. You aren't just filling seats; you are building a high-performing workforce that is aligned with your company’s long-term vision. This is the essence of modern people intelligence.

Key takeaways

Quality of hire is a multi-dimensional metric that includes performance, retention, and cultural alignment.
Focusing on 'time to fill' can lead to hidden costs associated with bad hires and high turnover.
Assessing work personality during recruitment ensures candidates are naturally suited to their roles.
Regular feedback from hiring managers is essential for refining the recruitment process.
Onboarding plays a major role in protecting the quality of your new hires.

FAQs

What is the most important component of the quality of hire metric?

While performance is often the top priority, retention is equally critical. A high-performer who leaves after six months results in a net loss for the company due to the high cost of re-hiring and lost institutional knowledge.

How soon can you measure quality of hire?

Early indicators like hiring manager satisfaction and 'time to productivity' can be measured at 90 days. However, a full quality of hire score is best calculated at the 6 or 12-month mark to account for long-term performance and cultural fit.

How does work personality affect this metric?

Work personality dictates how an individual prefers to engage with tasks and teams. When a person's natural style – such as The Doer’s focus on execution – matches the role's needs, they are more likely to succeed and stay engaged.

Can small businesses track quality of hire?

Absolutely. Even with a small team, you can track performance reviews and retention. The key is to be consistent with your data collection so you can identify trends as your business grows.

How can technology help improve hiring quality?

Platforms like Compono use assessments and data analytics to remove bias and match candidates to roles based on proven success markers, significantly increasing the likelihood of a high-quality hire.