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Amy O'Rourke
Acumen Republic
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Media Release

New Study Shows Most Companies Don’t Measure Quality of Hire, Impacting Bottom Line Potential

Hudson RPO and the HRO Today Institute Launch Global Benchmarking Report On Quality of Hire Measurement Activities Worldwide. Findings presented at Australasian Talent Conference 2013

Auckland, New Zealand, 11 June 2013 – A new global benchmarking report titled “Hiring for Success: Improving Organizational Performance Through Better Quality Recruitment” was recently produced by Hudson RPO, a division of Hudson (Nasdaq: HSON), the specialised professional recruitment, staffing and talent management solutions provider, and the HRO Today Institute, a division of HRO Today magazine. Several hundred global human resource leaders were surveyed about their quality of hiring practices as part of the study.

The Hiring for Success report defines quality in the workplace; the benefits of measuring quality of hire; the challenges of collecting data; and how to improve hiring processes. It also includes six strategies for improving quality of hire plus a case study demonstrating the commercial value of committing to a quality of hire program.

According to Hudson RPO Global Leader Kimberley Hubble, “All hiring managers know that there are considerable differences in productivity between average performers and high performers, which means quality of hire is imperative for businesses. Yet our study shows that 69% of respondents are not measuring quality of hire at all. We wanted to understand why this is and what companies can do to seize this untapped opportunity to improve their productivity.”

Ms. Hubble discussed the findings from the Hiring for Success report at the Australasian Talent Conference 2013, on Thursday 30th May 2013.

A snapshot of significant report insights include:

  • 85% of the companies that measure quality of hire believe doing so has a positive impact on hiring quality; nearly half believe there is a significant impact (improvement of more than 25%), while a further 40% of companies believe hiring quality improves by more than 10%. Of those that do measure quality of hire, the majority do not track the most effective metrics, remaining focused on retention of new hires, hiring manager feedback, and employee performance appraisal ratings instead of employee productivity, promotion speed of new hires and revenue/profit per employee. Best practice dictates that companies cross-reference metrics to create a multi-dimensional view. Often one metric does not tell the full story.
  • Of companies that measure, most do not differentiate between job roles. Executives, managers, sales staff, customer service staff and others are evaluated against the same metrics. For the greatest value, companies should develop specific metrics to fit each job group or family.
  • Overall, companies grapple with their HR technology. Only 35% of respondents say their HR information systems are working “well” or “fairly well” for them in supporting the measurement of hiring quality.
  • Worldwide, hiring manager and recruiter skills were noted as the most important influences on quality of hiring.
  • Surprisingly, less than half of the respondents identified a connection between candidate source and quality of hire.
  • Measurement of candidates’ motivational drives and behavioural capabilities in combination is the most accurate predictor of whether a candidate would be a high performer in a role: 91% of hires were rated good or excellent when such formal procedures were used.
  • 62% of those who measure quality of hire state that it has a dramatic impact (more than 25% improvement) on new hire retention.

To download the Hiring for Success: Improving Organisational Performance Through Better Quality Recruitment report, please visit:

About Hudson RPO

Hudson RPO (recruitment process outsourcing) manages the people, process and technology associated with recruitment on a full service (outsourced), hybrid (co-sourced) or project basis. A global force in talent acquisition solutions, Hudson RPO designs, implements and manages custom RPO programs for mid- to large-cap, multi-national companies. More information is available at or Twitter@HudsonRPO.

About the HRO Today Institute

The HRO Today Institute is a global community of CHROs and HR Operations executives dedicated to moving beyond the “why” and focusing on how to effectively manage human resource operations. The Institute is a closed community of executives from mid- and large-cap companies who engage in peer driven focus groups and research to answer key challenges in their current and future workforces. These challenges include a focus on workforce demographics, effective data sharing and technology in a global workforce, and where/how to find and engage external resources to support key programs.

The Institute’s mission is to Empower Global Operational Excellence from the executive suite through the employee desktop.

About Hudson

Hudson is a global talent solutions company with expertise in leadership and specialised recruitment, contracting solutions, recruitment process outsourcing, talent management, outplacement and eDiscovery. We help our clients and candidates succeed by leveraging our expertise, deep industry and market knowledge, and proprietary assessment tools and techniques. With more than 2,000 people in 20 countries, and relationships with millions of specialised professionals, we bring an unparalleled ability to match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients. We combine broad geographic presence, world-class talent solutions and a tailored, consultative approach to help businesses and professionals achieve higher performance and outstanding results. More information is available at

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Hudson is a global talent solutions company. We help transform the workplace and unleash the full potential of organizations and individuals. Our expert team and proprietary tools provide you with unique insights and services that help you maximize your success. Across 20 countries, we deliver a range of recruitment, talent management and recruitment process outsourcing solutions to get you and your business where you want to be.