If you’re a talent professional, you know how frustrating it is when a promising hire falls short.

With global hiring still sluggish and companies becoming increasingly strategic about headcount, quality of hire has never been more critical. It’s no surprise, then, that 89% of talent acquisition pros in LinkedIn’s newly released 2025 Future of Recruiting report agree that measuring quality of hire will only become more important moving forward.

Yet, despite its significance, measuring and tracking this elusive metric remains a major challenge. In fact, only 25% of recruiters say they are highly confident in their organization’s ability to measure quality of hire effectively.

So, how can organizations effectively measure and improve quality of hire? Here are the key takeaways from LinkedIn’s latest report.

1. AI will improve how we measure and track quality of hire

Much like it’s transforming nearly every other aspect of recruiting, AI is revolutionizing how talent teams measure the quality-of-hire metric. According to LinkedIn’s report, 61% of talent acquisition professionals believe AI will help them measure quality of hire more effectively. By analyzing employee performance data, spotting trends, and predicting long-term success, AI-powered tools are making it easier to assess the true impact of new hires.

Organizations are already seeing the benefits. Siemens, for example, is using AI tools to gain deeper, more accurate insights into candidates’ skills and potential. “AI-powered tools can analyze vast amounts of data to identify candidates with the highest likelihood of success, offering predictive insights that go beyond resumes and conventional interviews,” says Salma Rashad, global executive vice president of talent acquisition at Siemens.

The report also shows that companies whose recruiters use LinkedIn’s AI-assisted messaging are 9% more likely to make a quality hire compared to those who use it the least. The platform’s insights define quality of hire as a combination of demand, retention, and mobility — but as we’ll explore next, there's no exact formula.

2. Decide which quality of hire metrics matter most

There’s no one-size-fits-all formula for measuring quality of hire. While it’s a crucial metric that reflects the value a new employee brings to an organization, each company defines that value differently. Some may prioritize performance and productivity, while others may focus on retention or cultural fit.

So, how do you quantify that value? To effectively measure and improve quality of hire, you’ll need to identify the metrics that matter most to your company — and track them consistently.

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