SHRM Report Finds Only 20% of Companies Track Quality of Hire

A recent Society for Human Resource Management (SHRM) benchmarking report shows that just 20% of organizations measure the quality of hire, down from 27% in 2022. The report highlights that most firms focus on hiring speed and cost, while overlooking whether new employees perform well, stay long‑term, and satisfy hiring managers.

Finance leaders note that the commonly cited $5,475 average cost per hire omits hidden expenses such as vacancy‑related productivity loss, recruiter and manager time spent on screening, multiple interview rounds, agency fees, and the cost of re‑hiring when a selection proves poor. The rise of AI‑generated resumes and interview answers adds further validation effort, inflating hidden costs. Experts recommend a broader set of metrics—post‑hire performance, 12‑month retention, and hiring‑manager satisfaction—to more accurately gauge hiring effectiveness and justify recruitment investments.