There is no industry standard on how to measure quality of hire in retail. The reason for this is simple; every company measures the quality of hires depending on their own organization’s priorities. With our clients, Mindfield promises to improve the quality of their hourly workforce. We understand that defining quality and ultimately, success will vary by client.
What to measure
From our experience retailers can measure their quality of hire in 5 ways:
- Turnover – Measure turnover rates at 90 days or in the first year.
- Job performance – Measure by performance reviews and ratings, or hard numbers such as sales.
- Engagement – Measure employee engagement through engagement surveys.
- Customer service – Many retailers use secret shoppers or online surveys to measure customer service levels and their satisfaction. Improving customer satisfaction is another way of measuring the quality of your workforce.
- Assessment scores – For organizations who have implemented assessment surveys, one way to consider measuring the quality of your hires could be based on their pre-hire assessment scores.
Steps to getting there
If you’re just getting into measuring the quality of hire, we recommend identifying one to two metrics to start. For retailers, the simplest metrics to begin with are the 90-day turnover rate and employee engagement levels. If you are a sales organization and your POS system can pull data easily, we recommend measuring turnover and employee average sales per hour, day, and or shift.
One of the simplest ways to immediately improve the quality of hire is to implement a validated assessment tool that is tailored to your organization’s needs. Establishing a minimum benchmark score to hire from and sticking to that strategy for a minimum of 6 months will ultimately improve your quality of hire. This strategy can sometimes put a major strain on sourcing, and it can drive up your average time to hire and vacancy rate. Mindfield has found that there is a combination of both speed and quality to satisfy all stakeholders while meeting the organization’s needs.
To learn more about how Mindfield can help measure and improve the quality of hire for your company, click here.