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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.

New York, NY, June 19, 2013 --( A new global benchmarking report titled “Hiring for Success: Improving Organizational Performance Through Better Quality Recruitment” was recently launched by Hudson RPO, a division of Hudson (Nasdaq: HSON), the specialized 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.”

A snapshot of significant report insights include:
• Eighty-five percent 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%).
• Of those that do measure quality of hire, the majority do not track the most effective metrics. Best practice dictates that more companies need to 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” 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.
• Sixty-two percent of those who measure quality of hire state that it has a dramatic impact (more than 25% improvement) on new hire retention.

“With some reports finding the cost of turnover ranging from 20 % to as much as 200% of an employee’s annual salary, the benefit of quality of hire programs on new hire retention alone should make HR leaders take notice,” said Elizabeth Boudrie, Executive Director of the HRO Today Institute.

To download the Hiring for Success: Improving Organizational 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 HRO Today Magazine
HRO Today magazine is read by more than 70,000 HR executives and leaders and covers the latest industry trends in HR outsourcing, services, shared services and operations. HRO Today magazine is the publication of choice for the most senior executives facing the strategic decisions about operational excellence. HRO Today and offer the best content choices for the HR leaders seeking online information in the form of newsletters, webinar series and online video content. HRO Today is a product of SharedXpertise. With offices in the U.S. and Europe, SharedXpertise is the leader in media, summits and membership forums in the fast-growing HR, HR outsourcing (HRO) and Corporate Responsibility (CR) markets. Magazines include HRO Today, CRO and HRO Europe. Web properties include,, and Conferences include CRO Conferences, HRO Summit, RPO Summit, HRO Summit Europe and the HR Demo Show. With over 120,000 print and 1,500,000 online readers, 3,000 conference attendees and managing over 1,000 members, SharedXpertise continues to lead its markets by providing information to the buyers and influencers in the industries leading the responsible globalization of the world economy. Find more information at

About Hudson
Hudson is a global talent solutions company with expertise in leadership and specialized recruitment, contracting solutions, recruitment process outsourcing, talent management 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 approximately 20 countries, and relationships with millions of specialized 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 RPO
Sydny Layne

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