What do employers value above all else when it comes to new hires? Immediate impact.
The hallmark of a successful recruitment process is the immediate impact of the new hires it brings into the organization.
That’s according to a recent global study of 1,589 HR professionals conducted by Futurestep North America, a recruitment consultancy and division of talent management company Korn/Ferry International.
Two-thirds of respondents (67 percent) ranked new hire performance as the most or second-most important measure of success, followed by retention (35 percent) and line manager satisfaction (29 percent).
“Part of that has to do with the fact that the market moves so fast today,” said Bill Sebra, president of Futurestep North America. “When individuals get into an organization today, they really have to have a strong impact on that organization quickly.”
Traditional recruitment metrics such as cost per hire (27 percent) and time to hire (18 percent) were rated less important.
Measuring New Hires
According to the survey, the majority of organizations (76 percent) measure the impact of their new hires within the first year. In addition to performance data, which was cited by 64 percent of respondents, organizations measure new hires’ revenue/financial performance (46 percent), retention (35 percent), promotion (31 percent) and ability to recruit others (20 percent).
While the metrics are relatively clear, when to measure is more difficult to answer. Thirty-five percent of respondents reported they measure new hires before they expect them to have their greatest impact. The right decision is dependent on the type of business you are in and the type of role you’re hiring for, Sebra said.
“Impact from a sales perspective has always been a little bit faster than someone who is coming into an engineering role or someone that is coming into a product development role,” he said.
In general, the six-month mark is a pretty good starting point, Sebra said, but some roles may require up to a year for expected impact. At that point, good hires will shine and bad ones will be apparent.
“The first year is really the most important year for someone,” he said. “It sets the tone for how this person is going to perform over time.”