Solving the Quality of Hire Riddle: 3 Key Steps

If you’re a talent professional, you know how frustrating it is when a promising hire falls short.

With global hiring still sluggish and companies becoming increasingly strategic about headcount, quality of hire has never been more critical. It’s no surprise, then, that 89% of talent acquisition pros in LinkedIn’s newly released 2025 Future of Recruiting report agree that measuring quality of hire will only become more important moving forward.

Yet, despite its significance, measuring and tracking this elusive metric remains a major challenge. In fact, only 25% of recruiters say they are highly confident in their organization’s ability to measure quality of hire effectively.

So, how can organizations effectively measure and improve quality of hire? Here are the key takeaways from LinkedIn’s latest report.

1. AI will improve how we measure and track quality of hire

Much like it’s transforming nearly every other aspect of recruiting, AI is revolutionizing how talent teams measure the quality-of-hire metric. According to LinkedIn’s report, 61% of talent acquisition professionals believe AI will help them measure quality of hire more effectively. By analyzing employee performance data, spotting trends, and predicting long-term success, AI-powered tools are making it easier to assess the true impact of new hires.

Organizations are already seeing the benefits. Siemens, for example, is using AI tools to gain deeper, more accurate insights into candidates’ skills and potential. “AI-powered tools can analyze vast amounts of data to identify candidates with the highest likelihood of success, offering predictive insights that go beyond resumes and conventional interviews,” says Salma Rashad, global executive vice president of talent acquisition at Siemens.

The report also shows that companies whose recruiters use LinkedIn’s AI-assisted messaging are 9% more likely to make a quality hire compared to those who use it the least. The platform’s insights define quality of hire as a combination of demand, retention, and mobility — but as we’ll explore next, there's no exact formula.

2. Decide which quality of hire metrics matter most 

There’s no one-size-fits-all formula for measuring quality of hire. While it’s a crucial metric that reflects the value a new employee brings to an organization, each company defines that value differently. Some may prioritize performance and productivity, while others may focus on retention or cultural fit.

So, how do you quantify that value? To effectively measure and improve quality of hire, you’ll need to identify the metrics that matter most to your company — and track them consistently.

According to the Future of Recruiting, talent acquisition pros are using a variety of metrics to assess quality of hire. You’ll likely need a combination of these to capture the full picture at your organization:

  • 66% measure job performance (the extent to which new hires meet or exceed their goals)
  • 60% track retention/turnover (how long new employees stay with your organization)
  • 44% use hiring manager satisfaction as a key indicator
  • 44% assess skills match (how well candidates’ abilities align with the job requirements)
  • 37% consider peer, team, or client feedback
  • 36% measure new hire satisfaction
  • 35% evaluate team fit (whether the new hire enhances team performance)
  • 32% look at culture add (how well new employees align with organizational values)
  • 27% factor in candidate credentials (experience and education)
  • 26% track time to productivity (how quickly new hires ramp up)
  • 15% measure candidate diversity
  • 9% assess promotion rates 

While there’s no single, perfect formula, focusing on the right mix of metrics will give you a clearer, more actionable picture of your organization’s quality of hire — and how to improve it.

3. Strong employer branding drives quality hires

LinkedIn’s latest report reveals a significant finding: Strong employer branding directly influences the quality of hires. Companies that are known for delivering on key candidate priorities, such as offering opportunities to work with top-tier talent or on impactful projects, don’t just attract more candidates — they attract better candidates.

A well-defined employer brand helps you connect with the right talent by showcasing your organization’s core values and the overall employee experience. Candidates who align with your company’s mission and culture are more likely to perform well, stay longer, and contribute meaningfully.

The report highlights several employer value propositions that are strongly associated with quality hires. For example, companies known for offering opportunities to work on innovative projects are 11% more likely to make a quality hire. Other EVPs that significantly impact quality of hire include:

  • Opportunities to learn in-demand skills (+9%)
  • Flexible work arrangements (+9%)
  • Opportunities to work with highly talented employees (+9%)
  • Challenging and impactful work (+8%)
  • Excellent compensation and benefits (+8%)

These factors play a key role in building an attractive employer brand, ensuring that the talent you hire is motivated, skilled, and aligned with your organization’s goals. The takeaway? Investing in employer branding isn’t just a marketing strategy, it’s a strategic move that can significantly enhance the quality of your hires.

Final thoughts: Quality of hire will be a top priority in 2025

As organizations prioritize hiring the best candidates, they’re also becoming more intentional about measuring their success. AI, metrics-driven strategies, and a strong employer brand all play critical roles in optimizing hiring outcomes. 

By leveraging the right tools, defining the right metrics, and ensuring your company offers what top candidates want, you can significantly improve the quality of your hires — ultimately boosting your organization’s success.
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Originally published on LinkedIn

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