What is quality-of-hire and how is it assessed?

• A. The candidate's education level.
• B. A measure of new hire performance and retention quality, typically evaluated after a probation period using performance ratings and business impact.
• C. The cost of hire.
• D. The number of resumes screened.

Answer: (B)

Quality-of-hire measures how valuable a new employee is to the organization over time. It reflects both how well they perform and how long they stay, plus the real business impact they generate after a defined period, such as a probation or ramp-up period. It is usually assessed after onboarding with formal performance ratings and observable outcomes—like productivity, quality of work, customer satisfaction, and financial impact. This ties a hire’s ongoing value directly to measurable results, rather than just attributes or hiring-stage factors. Education level, cost to hire, or how many resumes were screened don’t capture the actual contribution or longevity of the hire.