Quality of Hire
Quality of Hire measures whether a new employee performs well, stays with your company, and contributes to business goals. For Swiss employers, it means tracking performance after day one, monitoring retention during the first 12 months, and using that data to improve hiring decisions. Most employers skip this step entirely.
Quality of Hire is a metric showing how well a newly hired employee performs in their role, how long they stay, and whether they add real value to your business. Unlike a successful recruitment process—which ends when someone signs the Arbeitsvertrag—Quality of Hire looks at what happens after.
You measure it in multiple ways: performance during the Probezeit (probation period), retention after 12 months, productivity relative to salary, and peer feedback. It becomes your guide to hiring better next time.
When Quality of Hire Matters
Quality of Hire comes into focus after the first hire is complete. During the Probezeit—typically two to three months in Switzerland—you gain your clearest signal. If someone underperforms or leaves early, Quality of Hire was low. If they thrive and stay, it was high.
Most SMEs notice this issue when they hire the same role twice in 18 months, or when a new employee costs CHF 50,000 in training but delivers only half the expected output. That's a Quality of Hire failure that hindsight reveals.
- After Probezeit ends, your first full performance review (month 2–3) is critical data
- Track whether employees stay past the 12-month mark—early departures signal bad fits
- Monitor ramp-up time: how long until productivity matches a 100% Pensum expectation
- Compare hiring outcomes across different recruiting methods (RAV/ORP referrals, your network, job boards)
- Poor Quality of Hire costs CHF 15,000–40,000 per replacement in direct expense alone
- Canton-level labour-market tightness affects retention; what works in Zurich may not in Valais
Your Obligation as Employer
Swiss law (ArG, Code of Obligations) does not mandate Quality of Hire measurement. However, the Probezeit exists specifically so you can assess fit before full commitment. Using that window deliberately is good practice and risk management.
You must document performance during and after Probezeit. If dismissal occurs during probation, your reasoning must be factual and documented. If someone underperforms later and you need to part ways, prior records protect both parties. A lawyer should confirm termination specifics for your canton.
- Complete a structured Probezeit review by week 8–10; don't wait until month 3
- Document concerns in writing during probation, not only at the end
- Compare job description against actual output; clarify gaps in your next hire spec
- Ask departing employees why they left; their feedback is Quality of Hire data
- If dismissing during or after Probezeit, keep records of performance gaps or behavioural issues
- Consult a lawyer on canton-specific notice periods before terminating anyone
The Most Common Mistake
Most Swiss SME founders hire for credentials—the CV looks good—and assume the rest follows. They skip structured Probezeit review. By month six, they realise the person doesn't fit the culture, can't work independently, or misunderstood the role. Then they either tolerate underperformance for 12 months or face an awkward, costly termination.
The fix: define what 'good performance' looks like *before* hiring. During Probezeit, measure against that definition weekly. If problems emerge, discuss them honestly and document them. A 90-day honest conversation beats a year of regret.
- Neglecting Probezeit review meetings leaves you with no baseline for later claims
- Vague role expectations ('we'll figure it out') guarantee poor fit assessment
- Hiring only from referrals without reference calls misses Quality of Hire signals
- Assuming team feedback is optional during probation wastes your best information source
- Not comparing hire performance to the job spec makes failure invisible until it's costly
- Waiting until month 12 to assess retention means missed intervention windows
Frequently asked questions
- How do I measure Quality of Hire concretely?
- Track three metrics: (1) Performance in Probezeit and first review against the job description. (2) Retention—did they stay past 12 months? (3) Peer feedback—do teammates say this hire was good? For a developer, also measure code quality or project delivery. For sales, track quota or pipeline contribution. Keep it simple and role-specific.
- What if I spot a Quality of Hire problem during Probezeit?
- Document the specific gap (e.g., 'cannot work unsupervised on X tasks' or 'attendance below 90%'). Schedule a candid conversation. Give the employee a clear chance to improve with a short timeline—two weeks is standard. If they improve, great. If not, termination during probation is simpler legally and financially than after. Consult your canton's labour office or a lawyer first.
- Does Quality of Hire apply to part-time or fixed-term staff?
- Yes. A part-time hire at 60% Pensum should still be assessed for performance fit and retention intent during their Probezeit. Fixed-term contracts follow the same logic: if the contract ends, did they deliver? Use the same structured review approach. Fixed-term staff often don't stay, so focus on output during their contracted period instead of 12-month retention.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.