The A-Zs of Hiring Glossary

Performance-based Hiring

What Is Performance-based Hiring?

Performance-based Hiring is a recruitment strategy that focuses on hiring top-performing candidates based on their ability to achieve results rather than just their qualifications and experience. This approach involves a thorough assessment of a candidate’s skills, experience, and accomplishments to determine their potential to meet or exceed the expectations of the job.

Performance-based Hiring is a data-driven approach that uses metrics and analytics to evaluate candidates objectively. It involves a structured interview process that assesses a candidate’s past performance, problem-solving skills, and cultural fit. This approach helps organizations to identify and hire candidates who are more likely to succeed in the job and contribute to the organization’s success.

Examples of metrics used in Performance-based Hiring include time-to-hire, cost-per-hire, and quality-of-hire. These metrics help organizations to measure the effectiveness of their recruitment process and identify areas for improvement.

What is Performance-based Hiring?

Performance-based Hiring is a recruitment methodology that focuses on hiring candidates based on their ability to deliver measurable results in the job role. This approach involves identifying the key performance indicators (KPIs) for the job role and assessing candidates based on their past performance and ability to meet those KPIs.

How is Performance-based Hiring different from traditional hiring?

Traditional hiring focuses on qualifications, skills, and experience, whereas Performance-based Hiring focuses on a candidate’s ability to deliver results. Performance-based Hiring also involves a more structured and objective hiring process, including behavioral interviewing, skills testing, and reference checking.

Performance-based Hiring Dos And Donts


  • Do create a clear job description that outlines the necessary skills and experience required for the position
  • Do conduct a thorough candidate assessment to ensure they have the necessary skills and experience to perform the job
  • Do set clear performance expectations and goals for the new hire
  • Do provide ongoing feedback and coaching to ensure the new hire is meeting performance expectations
  • Do continuously evaluate and adjust the hiring process to improve performance outcomes


  • Don’t rely solely on resumes and interviews to make hiring decisions
  • Don’t hire based on gut feelings or personal biases
  • Don’t overlook the importance of cultural fit in addition to skills and experience
  • Don’t rush the hiring process and make a decision without proper evaluation and assessment
  • Don’t neglect to communicate clear performance expectations and goals to the new hire
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