Quantitative Performance Metrics

Objective measures such as sales figures, productivity rates, and project completion times used to assess employee performance.HR teams rely on these metrics to track progress, identify skill gaps, and determine compensation adjustments based on data-driven results.

What are qualitative and quantitative metrics in HR?

In HR, both qualitative and quantitative metrics help gauge human capital’s contribution to the organization.

✅ Qualitative Metrics (examples):

Employee engagement and motivation, communication and interpersonal skills, initiative and creativity, cultural fit and team collaboration.

✅ Quantitative Metrics (examples):

Employee retention rate, time to fill a vacancy, number of promotions or internal moves, attendance and absenteeism percentages, training completion rate.

Quality of Hire

A metric that evaluates the effectiveness of recruitment efforts by measuring a new employee’s performance, engagement, and retention over time.
HR professionals track quality of hire through onboarding feedback, performance reviews, and retention rates. This helps refine recruitment strategies and hiring processes.

‍

What is the formula for quality of hire?

Quality of hire measures the value a new employee brings to your organization.

While there’s no single formula, a common way to calculate it is:

Quality of Hire = (Performance Score + Retention Rate + Cultural Fit Score) / Number of Metrics

Usually:
✅ Performance Score (derived from performance reviews)
✅ Retention Rate (percentage of new hires who stay after a year)
✅ Cultural Fit Score (manager’s or team’s assessment of interpersonal skills and culture match)

‍

How to do quality hiring?

1. Develop clear job descriptions and competency models‍

2. Implement a structured interview process (with behavioral questions)

3. Use work samples, case studies, or technical assessments‍

4. Gather input from multiple stakeholders (hiring managers, team members)

5. Check cultural fit and motivation alongside skills and experience

6. Provide realistic previews of the role to align expectations

7. Monitor and follow up post-hire to gauge performance and retention

‍

What is the cost per hire?

Cost per Hire (CPH) measures total expenses to fill a role.
Formula:

Cost per Hire = (Total Internal Costs + External Costs) / Number of Hires

✅ Internal Costs: salaries of recruiters, interviewing team’s time, administrative expenses

✅ External Costs: job board fees, background checks, relocation, assessments, or third-party recruiters’ payments

‍

How do you measure hiring efficiency?

Hiring efficiency assesses how effectively and quickly you fill roles with high-caliber talent.
Some key metrics include:

1. Time to Fill — How long it takes to fill a position

2. Cost per Hire — Overall expenses related to a new hire

3. Quality of Hire — The new team member’s performance and retention

4. Source of Hire — Where your best candidates come from

5. Interview-to-Hire Ratio — Number of interviews needed to make a hire