In a first-of-its-kind benchmark report, Workday partner Crosschq analyzed nearly 4 million new hire records across Fortune 500 companies to understand the impact that quality of hire has on growth.
In this article we discuss:
If your business isn’t focused on the impact that hiring decisions have on revenue, you’re already behind. Case in point: Companies with higher quality of hire (QoH) are growing revenue 2.5% faster than peers, translating to $809 billion in annual revenue, according to Crosschq’s Brilliant 500 study.
By analyzing over 3.8 million new hire records across Fortune 500 companies, Crosschq (a hiring intelligence platform) quantified something that CHROs have known for a long time, but sometimes struggled to prove—your people drive your outcomes.
In the current climate, many organizations are solely focused on harnessing AI to drive results, and they’re losing sight of the very thing that makes using that technology possible—the workforce.
As organizations dedicate extensive funds to investments such as AI, measuring QoH may sound like a nice-to-have. But here’s the risk: large AI expenditures may cause a deficit in the talent investments needed to make good on those AI investments.
What is the value of new technology without a deliberate focus on the right talent to steward it? Potential from AI should never outpace the potential of your people.
As Workday CEO Carl Eschenbach recently pointed out in a Wall Street Journal interview, “More than 65% of the Fortune 500 use us [Workday], and not one of them is going to say 'Come in here, AI startup, and run my back office and financial controls.'"
“More than 65% of the Fortune 500 use us [Workday], and not one of them is going to say “Come in here, AI startup, and run my back office and financial controls”
Carl Eschenbach
CEO
Workday
AI simply can’t be successful without the right people standing it up, operating it, governing it, and making sure it’s returning a significant ROI for their organizations. The future of work will be elevated, with humans harnessing more of their skillset to ethically leverage AI and deliver results. In essence, who you hire is still your competitive edge.
For too long, we’ve measured our talent strategy in a silo. We’ve focused on time-to-fill and cost-per-hire, treating recruitment as a transaction rather than a strategic imperative. But in a world where talent is the ultimate competitive differentiator, we must shift our focus to the quality of our people, not just the quantity.
With technology advancements driving significant changes to the world of work, it takes incredible talent to keep things on track. Gone are the days of a simple referral equaling a qualified hire.
Now, we need more from our employees. We need them to be agile. We need them to develop new skills quickly and operate under significant pressure. These are just a few of the attributes that candidates need to be successful.
Potential from AI should never outpace the potential of your people.
We have to look beyond the traditional status-quo hiring methods. This includes tapping into other skills that will help candidates drive measurable impact in a workforce that now includes agents alongside people.
To do this, we have to start asking the hard questions: Are we identifying and nurturing the skills our business will need in the next 3 to 5 years? Do we have a clear picture of our internal talent so we can redeploy people to where they can have the most impact? Are we giving our employees the tools and opportunities to learn and grow at the speed of business? Where are our employees redirecting productivity gains throughout their work?
With AI freeing up employees from easily automated tasks, hiring the right people who are motivated to use that extra time to deliver more—not the same in less time—is critical to propelling businesses forward and frankly, justifying investments in AI.
As our own Chief People Officer Ashley Goldsmith recently said, “AI may be rewriting the rules of work, but it will never replace the value of engaged, motivated people. The companies that win will retain top talent, create meaningful growth opportunities, and have a clear strategy for human-AI partnership that drives results.”
We’re proud to see that 70% of recognized companies within the Brilliant 500 report are Workday customers—a tangible representation of what organizations need to do to capitalize on this special moment in time.
And we’re thrilled that Workday achieved the top spot in QoH for the Software industry based on our strategically designed workforce, technology, and innovation that drives our people forward.
“AI may be rewriting the rules of work, but it will never replace the value of engaged, motivated people.”
Ashley Goldsmith
CPO
Workday
But most importantly, the Brilliant 500 report is a reminder to HR leaders to continue prioritizing people—and our hires—as the real driver of innovation and excellence.
How are you ensuring your hiring decisions are meeting the needs of your business and fueling growth? Explore how a skills-based talent strategy can give your organization a competitive edge.
More Reading
Small business HR teams often operate lean, but they face the same challenges as any enterprise when keeping pace with modern workforce demands. HR software built with SMBs in mind is the solution.
The HR function has become a source of strategic guidance for decisions in every part of the business. But the elevated role also comes with new challenges—learn how to solve them below.
HR has a vital mandate to move past automation and focus on the human implications of AI—specifically defining new skills, designing ethical partnerships, and ensuring a shared vision across the enterprise.