How to Measure and Maximize

Quality of Hire

… and Achieve an ROI > 500%!

Based on Lou Adler’s

Hire With Your Head and The Essential Guide for Hiring & Getting Hired

Rev 814-A

ROI Calculator = budurl.com/QoHROI4

Mid-third

Strategy/Process/People

Raise Talent Bar

Existing Processes

Maintain Talent Level

Shortcuts/Random

Lower the Bar

Upper-third Lower-third

Break Through the Talent Ceiling

Difference in Performance of People Hired

Max

Speed &

Volume

Efficiency

& Minimize

Cost

Max

Quality

& ROI

Mid-third

Strategy/Process/People

Raise Talent Bar

Existing Processes

Maintain Talent Level

Shortcuts/Random

Lower the Bar

Upper-third Lower-third

Break Through the Talent Ceiling

Difference in Performance of People Hired

Fill

Seats

Quickly

Hire Best

Who Meet

Filters

Hire Best

Available

Business Process for Max QoH

Talent Partnership: Recruiter, Manager, Candidate

Performance Profiles Careers, not Lateral Transfers

Talent-centric Sourcing Target Best People – Deep Networks

Two-Question Interview Evidence – Assess – Recruit – Defend

Integrated Recruiting 30% Solution – Career vs. Comp

ROI: Raise

Talent Bar

What’s the

ROI of a

15% Better

Person?

Salary 100 people hired @ $100K each = $10mm

Avg Generate $24mm Profit per Year

Top 1/3 will generate $3.6mm/yr more or $14mm

extra variable profit over 4 yrs

ROI = $14mm/Cost to Hire Top 1/3 200% to 700%

Profit to Salary Multiplier

$600K x 40% = $240K

$240K/$100K = $2.40

Requirements to Hire Top-Third

Different Strategy Attract In vs. Weed Out

Different

Processes Benchmark the Best

Shift Sourcing Mix More Passive

Talent Partnership Recruiter & Manager

Solution vs.

Transaction-based

Performance

Metrics

Rethinking Talent Strategy Is there a surplus of the best people or scarcity?

HAVE GET BECOME DO

Surplus – Weed Out the Weak – Active – Best Who Apply

Scarcity – Attract the Best – Passive – Raise the Talent Bar

DO BECOME

Hiring Manager Focus: DOING vs. HAVING

Top Candidate Focus: DOING & BECOMING vs.

GETTING

Zone 1 Zone 2 Zone 3 Zone 4

Very Active Tiptoers Explorers Super Passive

Time

Gro

wth

an

d Im

pac

t

Extraordinary Career Move

Significant Career Move

Much Better Job

Somewhat Better Job

Increase Quality by Career Zone

Shift to Steeper Part of the Career Zone Curve

20% - Ads 40% - Email/ERP 40% - Networking

5%

20% 50%

25%

How Do You Find Your Best People?

Define Pre-Hire Quality

What’s the Real Job?

• Collaborate with sales rep to

develop customer solutions at

C-level in F500 companies

• Lead intense detailed product

spec presentations to

sophisticated buying groups

• Work with contracts to develop

cost/price/margin analysis for

$5mm+ programs

• Handle 3-6 major programs

concurrently

This is not a job

description. It’s a

person description.

Conduct Pre-hire Performance Review

Conduct Pre-hire Performance Review

Question 1: Ask MSA question for

job-related, team & individual tasks

Have candidate prepare a 360 work

chart for team relations

TIME

IMPACT

Team

Individual

Ask many MSA questions

to see growth over time

How to Measure Quality

of Hire Pre- and Post

Rank in Comparison to Job

1.0 The Bottom Third

2.0 Middle Third

2.5 Current Average

3.0 Rock Solid: top 20%

4.0 Top-notch: top 10-15%

5.0 Rock Star: top 5%

Compare Pre- and Post-hire Results

for Feedback and Process

Improvements ROI Calculator

budurl.com/ROICalc

Measure & Max Quality of Hire

What’s the ROI of a Top-

third vs. Mid-third?

Performance-based Hiring

High-tech LinkedIn Recruiter &

High-touch Performance-based

Hiring Proof of Concept

lou@louadlergroup.com ROI: Raise

Talent Bar

Proof of Concept