Contact us anytime to know more — Abhishek P., Founder & CFO CISIN
Those HR solutions teams who can seamlessly use information are the individuals who will sponsor most successfully in the next few years.
Let us look at only a couple of ways information can help improve your recruitment activities.
What Is Data-Driven Recruitment?
In selecting new talent, HR managers base their choices on qualifications pertinent to the position and particular talents.
Data-driven recruiting is a means to improve working practices by using information and concepts from previous and ongoing hiring procedures. Think about the following elements:
- The current rental rate or fair market value will apply when you sign the lease.
- Average time to hire
- The most qualified candidates offer the best resources
- Rates of conversion (candidate interview, offer to hire, and time to hire)
Uber, Robinhood, and Facebook/Meta are just a few of the top organizations that review applications and choose the most eligible applicants based on talents, not educational history, using data-driven recruitment.
What Is The Importance Of Data-Driven Recruitment?
There are many reasons to adopt a data-driven approach when recruiting.
Accelerating The Hiring Process
Data collection will allow you to identify bottlenecks in your recruitment process and help you decide whether to eliminate them or make them more efficient.
It is important to start gathering information about your hiring process, such as:
- Application churn rate
- The time it takes to hire someone for a job.
- There are two recruitment methods: job advertisements vs. job boards and recruitment events vs. employee referrals.
- Length of time needed to finish each hiring stage. How long do you spend preparing for interviews?
If many applicants withdraw immediately, it may be possible to simplify the application procedure. After letting people submit their resumes, remove the online application from your job offering.
If the interview process is sluggish due to scheduling challenges, a solution is to automate the scheduling process. Thanks to these valuable insights, you can estimate the time it will take to hire. With this knowledge, stakeholders can be safely advised of reasonable timescales.
Reduce Your Hiring Costs
Data-driven recruitment reduces the time it takes to hire and allows you to make more of your budget for recruiting.
To find out if your existing recruiting technology stack is assisting you with talent acquisition, you can track your source of hiring and evaluate it. You might not need video interviewing software if you are recruiting locally.
Avoiding Bias In Hiring And Making Better Hiring Decisions
You can objectively select the ideal applicant for the position using a data-driven recruitment strategy.
It aids in developing a hiring procedure that complies with the law. This encourages DEIB in your organization. A diverse workforce encourages creativity and innovation while enhancing business decisions performance and decision-making effectiveness.
Examining the outcomes of work samples or pre-employment evaluations, for instance, can help you decide which prospects to interview. This makes it simpler for recruiters and HR specialists to consistently evaluate each candidate's skills and capabilities.
This aids in removing prejudices that might affect candidate selection. No of their color, gender, age, or ethnicity, it guarantees that every candidate will be evaluated equally.
Enhancing The Candidate Experience
Try it out for a minute: Consider yourself a job applicant looking for employment online. As you look for your next career, you will constantly receive emails and job alerts.
If one of the organizations you applied to has a drawn-out and complicated recruiting procedure, you might need to remember to submit your application. Data-driven recruiting is more than just using the most recent HR technology. It concerns how to speed up and simplify the hiring process for candidates.
Only 17% of companies request feedback from candidates at multiple stages in the recruitment process. This helps you to understand the stage that you need to improve. Your candidates will also appreciate the process's speed, ease, and fairness.
Be Proactive, Not Reactive
Data can be used to forecast recruiting demands and support hiring strategy planning. This enables you to plan proactively rather than in response to the future.
It is possible to monitor business growth (new locations, new product offerings), internal mobility, and the annual turnover rate of staff (like promotions and lateral transfers) by using business analytics.
We will need Y amount if X employees leave the company in the past. This is so that we have an immediate recruitment budget in case of a need for new employees.
It is important to forecast the hiring time so that you can set expectations for new employees. This is particularly important for critical positions, such as new managers who will lead new departments during product launches.
Quality Of Hire: Boosting The Quality
Your company's success is directly related to the quality of your employees. There are numerous ways to use data to find highly qualified people.
Resumes and interviews are less trustworthy than work samples and tests of mental capacity. Compared to resumes and interviews, they are more accurate at predicting future job performance.
Focusing on candidates who are qualified is another way. Gather information on top performers, employee turnover, and productivity levels.
These statistics can be compared among various hiring channels (social media, job boards, and recruitment firms) to determine which ones provide the best candidates. You can improve the quality of your hire by gathering and analyzing this information.
For Success, Set Up The Recruitment Team
A data-driven model for recruitment allows you to create a repeatable process that will allow you to make good hiring decisions.
Hiring managers and recruiters are more certain in the selection process since they have the data to support their judgements. Teams that are data-driven are also more cost-effectively efficient. They become more effective as a result, increasing the company's worth.
Data-Driven Recruitment Has Many Benefits
Data-driven recruiting analyses enormous talent pools to find possible individuals with the knowledge, expertise, or concepts that will aid enterprises in achieving their objectives.
Recruitment that is data-driven increases both the quantity and quality of hire. Data-driven hiring benefits you by:
- Budget Your Money: Decide which channels you want to use to attract qualified individuals to spend your budget properly.
- Improve Productivity and Efficiency: HR managers believe they need better technology and metrics for recruiting. 68% say so. To determine if you have any specific steps to accelerate hiring, you could track how many emails your team members send to candidates.
- Be Diverse: Check the application form conversion rates to see whether your questions or career page design need to be updated. Examine your candidates' demographics to determine whether you discriminate against protected groups.
- Improve Control Over the Hiring Process: 77% of HR managers think more effective recruiting will result from a deeper grasp of the market. How many candidates are needed for a single hire can be determined by the rate of return on employment?
- Make More Objective and Legally Sound Hiring Decisions: A structured interview can be a great way to hire the right candidate.
- Make Arguments for Improving the Recruitment Process: According to 94% of HR managers, the use of software facilitates the hiring process. If your company has a referral programme, you can provide statistics to support your claims.
Read More: Get the Best Tools and Technologies for Big Data Analytics
Recognizing And Fostering Your Company Brand
A strong company brand will create all the difference in your attempts to keep employees happy and attract the very best talent to the company.
A Rise intelligent analysis found that 84% of workers would think about jacking within their present job to move to a company having a great reputation -- even if the salary bump wasn't that big. So how can data and analytics help you build a powerful company brand?
First and foremost, you will need to know exactly what you need your company to be. What do you need your company to stand for? How do you want employers to feel about working for the company? What makes you different from other employees? After identifying this, analytics and data can inform you if this brand picture chimes with fact.
You can conduct opinion analysis on an interview, survey responses, and social media posts to ascertain your company brand's success. Or, if your business intelligence goes through significant changes, such as a huge restructuring, you can quantify employee opinion before and after the adjustments to evaluate the influence on your brand.
Short, anonymous hub polls can let you know how likely employees are to suggest the firm to others. Crucially, instead of carrying the temperature annually in a big staff survey or asking questions from exit interviews, pulse surveys permit you to ask employees once a week, once a month or two once per year to get a more powerful sense of how they're feeling during the year.
But the employer brand isn't just about maintaining your current employee's joyfulness; it is also about how appealing your company seems to outsiders, including ex-employees. A Severance and Workforce Transition Study revealed that more and more companies are mining social websites and company review websites like Glassdoor after putting off an employee.
Moreover, feedback from anybody who has left the company voluntarily will even give helpful actionable insights into people's understanding of your brand.
Concentrating On The Genuine Recruitment Channels
Most business processes utilize a combination of recruitment channels, typically newspapers, headhunters, social networking campaigns, online job sites, and LinkedIn searches.
With an array of recruiting channels to choose from, it is important to understand which channels deliver the best return on investment, which means that you can concentrate your time, energy and budget.
The beauty of information is that it lets you test your recruiting channels and quantify their achievement rate in far more accurate ways.
So, rather than focusing on clear indicators like just how many CVs you receive in response from other stations (which tells you quantity, not grade), you might look rather at more valuable indicators like what number of offers were made to candidates from specific channels. Or you could assess your most successful employees in specific roles and pinpoint the channels they came from.
The point is to target your recruiting process, so you're reaching precisely the types of people you wish to bring.
A good example comes from Marriott Hotels and its impressive social recruitment plan. Marriott Hotels has the biggest recruitment page on Facebook, with more than 1.2 million likes and tens of thousands of individuals interacting with the webpage each week.
The page lists available jobs and beautifully shows through photos and videos what it is like to work at this hotel chain. The management actively encourages constant engagement through likes and comments -- this is a two-way street, with Marriott reacting to remarks.
Everything is intended to draw the classic 'people person' to Marriott's company brand and show the company off as a desirable workplace.
Recognizing And Analyzing Talent
Many HR professionals or hiring managers may admit that they make appointments based on gut feeling. But analytics and data are helping companies take the guesswork out of recruitment and find more appropriate folks who'll stay happy and at the place for a longer time.
Firms in each industry are turning to information. Resources like Evolv and TalentBin let them crunch data in more ways than ever. Tools like this allow employers to get the best individual for any specific job based on their abilities, interests, and actions.
Additionally, vendors like LinkedIn are increasingly offering big data and Artificial intelligence applications to sift through candidates' profiles and determine the most appropriate people for a position.
That is just as well, considering that 52 percent of talent acquisition leaders state the hardest part of recruitment is identifying the right individuals from a large pool of candidates. After recruiting a new candidate, nature and fit are just as vital as a skill set. So, considering the abilities, qualifications, and expertise that are excellent for a particular position, you will also undoubtedly think about culture, match, and character attributes.
All this can be assessed accurately nowadays. It's relatively simple to use analytics applications to sift through potential candidates and locate those with informative points that most match your 'shopping list' of ideal attributes -- in just a matter of minutes.
The final hiring decision would always return to a person. Still, data and analytics can save a good deal of time by narrowing the field down from hundreds of candidates to the most appropriate 10 or 30.
Automating certain processes frees the HR team to focus on other pursuits.
JetBlue Airlines gives us one great instance of data analytics used to obtain the most appropriate candidates. Formerly, the company had concentrated on 'niceness' because it is one of the most important attributes for flight attendants.
Then, after carrying out some client information analysis using the Wharton Business School, JetBlue was interested to discover that, in the opinion of their clients, being helpful is more significant than being fine -- and may even compensate for people being not so wonderful. The company could then use this info to narrow down candidates more efficiently.
How To Manage Data While Hiring
Although data-driven recruitment might seem obvious to talented professionals, it takes time for such a strategy to become a reality.
These are the four steps to embed data in your workflow.
Step 1:
It would help if you chose metrics relevant to your company and how much you plan to invest in tracking data. Pro tip: Based on what matters most for recruiting, decide which metrics you want to examine.
Make sure you get data that can be quantified. Make sure to provide specific reasons if you want to keep track of why employees depart your organization. This will allow you to determine how many people leave for similar reasons.
Step 2:
You can choose how to acquire the data once you've decided what information you need. Consider that you want to monitor your careers page's conversion rate to help you identify the individuals who move from browsing job listings to applying.
Using website analytics, you can compare the number of visitors to your careers page and the number of individuals who examine certain job openings with the number of candidates.
Step 3:
Analyzing candidates' negative and positive feedback might help you discover more about your recruitment strengths and flaws.
You may be expending time and effort on a step that needs to be fixed. You should take another look at the scene right now. The puzzle piece you find the most challenging and time-consuming yields the best results.
You can identify a bottleneck that causes you to move slowly. Data-driven hiring can address a variety of issues. The moment has come to pay attention to the data and make changes.
Step 4:
Some data can be utilized to make decisions right away, while others can be used to aid in future planning. You can use this phrase to reexamine your entire hiring procedure.
For instance, you can use data to estimate future labor demand and supply to assess and pinpoint labor risks. This is helpful if you need to forecast future workforce situations over five years or prepare your staff for certain scenarios.
You may, for instance, simulate the expansion of the labor market and the effects of people leaving or retiring. Data can be combined, analyzed, and used to track your hiring process till you meet your goals. To do this, an analytics tool is a helpful tool.
It is also simple to change variables to determine how situational changes affect your strategy. The appropriate technologies may be used to evaluate data and provide your business strategy with insightful insights.
Big Data Can Be A Huge Benefit To HR Analytics
Big data can help HR and HR analytics in a variety of ways. Let's examine seven of the most significant in more detail.
Recognize the Best Talent: In a cutthroat environment, it can be challenging to discover the greatest talent.
Big data enables HR managers to sift through countless resumes, focusing their search on the most qualified applicants. Without big data, finding top talent would be far more time-consuming and challenging.
Prioritize the Recruitment Channels: Companies employ a variety of recruitment methods to fill unfilled vacancies.
Big data can assist you in determining which channels are successful and which are not. Suppose a firm discovers that internal recruitment yields better results than online job sites. In that case, it may decide to concentrate its efforts there.
Employee Health and Injury Detection: An organization with many employees with injuries and health problems will have lower productivity and profitability.
Big data enables HR managers and leaders to identify prevalent health issues in their workplaces and make appropriate preparations. It can indicate that sick days among workers peak between November and January. This could lead to the need for temporary staff.
Training Should Be Improved: The hiring process may include expensive and time-consuming training.
Big data can be used by organizations to evaluate a training program's effectiveness, which can lower the likelihood of underwhelming staff retention.
Employee Motivation and Engagement Can be Improved: Organizations can reward and identify top performers using big data.
Data governance tools can spot policy and standard infractions so that remedial action can be taken immediately. Big data can also show whether or not staff require more resources or training due to poor performance.
Steady Increase Retention: Finding the right people is just one aspect of HR. Keeping them happy is another.
Big data allows HR managers to identify reasons employees leave and create retention programs quickly. Although training and recruiting new employees is costly, losing one can be even more expensive.
Predict the Future: Big data analysis can be used by business operations to identify patterns and trends in HR and generate forecasts for the future.
Future forecasting offers HR managers the chance to enhance their long-term HR strategy and stop future performance, hiring, and retention issues.
Conclusion
Big data can be used to enhance HR initiatives by organizations.
They can enlarge their data warehouses or buy more servers. Big data's complexity and analytical requirements must be met via cloud technology. Any device with an internet connection can access data stored in the cloud.
It is kept on distant servers and is accessible to anyone with access to those systems. The cloud removes the need for data warehouses, and HR managers can gather and use data efficiently. A comprehensive cloud tool is required to integrate and manage data to get the most from big data analytics for HR.
Organizations that want to manage employees effectively and achieve their business requirements must use big data.
