Every day, we see progress. Every business is innovating and making moves to be on top. Apart from cutting-edge business strategies, human resources are one of those essential things that companies can leverage. But with extreme competition, it’s hard to keep up with getting the best hires.
Whereas ten years ago, HR would rely on the traditional hiring process, working long hours just to get to the bottom of a huge pile of hundreds, if not thousands, of applications. Relying on gut feelings and working from point A to point B may have worked, but not today.
That’s why recruiters have to step up. Now, it’s much easier—from sourcing talents to screening and onboarding them. What may have taken 20 hours in the past decades will now be done in just days or minutes.
What is “data analytics” in recruitment?
Data analytics in recruitment refers to using data and statistical methods to analyse candidate data, such as resumes and job applications. The keywords here are efficiency and speed. By using data analytics tools like applicant tracking systems and assessments, recruiters can make informed decisions about which candidates to hire.
This helps them save time and reduce costs in the recruitment process. Using data analytics also helps identify candidates who may have been overlooked in traditional recruitment processes. Therefore, it increases the chances of finding the best fit for the job.
If you’re wondering how vital using data analytics in recruitment is in the industry, 78% of big corporations consider people analytics a crucial and pressing priority for their business. Furthermore, companies with a sophisticated people analytics function experience profit margins that are up to 56% greater than those of less advanced companies.
5 Easy Ways to Utilise Data Analytics in Your Recruitment
- Identify the most effective recruiting channels
To determine which channels are most effective, the recruitment department can analyse data on past hires to identify the source of successful candidates. For example, they might find that employee referrals result in more high-quality hires than job boards or social media platforms. The HR can then focus their efforts on the most effective channels to improve the quality of their candidate pool and reduce the time and costs associated with filling positions.
- Optimise the candidate screening process
You can also choose pre-employment assessments and predictive analytics to screen candidates quickly. These tools assess a candidate’s qualifications, skills, and fit for the role. It can also be customised to match the specific needs of the company. With an optimised screening process, recruiters can reduce the hiring time and ensure that only the most qualified candidates move forward.
- Enhance diversity and inclusion efforts
Another important thing to consider when hiring today is diversity and inclusion. Past hires and demographic data help recruiters identify biases in the recruitment process and take steps to address them. For example, they might find job descriptions biased towards a particular gender or ethnicity or that certain recruiting channels tend to attract less diverse candidates. But with data analytics, identifying these biases and taking action is now easier. Recruiters can easily adjust job descriptions or partner with diverse organisations to attract a wider pool of candidates.
- Improve the candidate experience
With data on the candidate’s experience, recruiters can identify areas for improvement and make changes to ensure a positive experience for candidates. For example, they might find that a lengthy application process is causing candidates to drop out or that a lack of feedback leads to frustration. But with data analytics, improving candidate satisfaction and increasing the likelihood of successful hires is highly achievable.
- Monitor and measure recruitment effectiveness
Another use of data analytics is tracking key metrics such as time-to-hire, cost-per-hire, and candidate quality. For instance, they might find that certain process stages take longer than expected or that costs are higher than anticipated. These metrics result in data-driven decisions, not just messy gut feelings.
Case studies
Here are some real-world examples of companies that have successfully implemented data analytics in their recruitment process:
Xerox’s use of data analytics in recruitment resulted in creating a predictive model that helped them identify the characteristics of successful sales representatives. By analysing the data, Xerox identified vital qualities, such as building client relationships and strong communication skills, essential for success in the role. Xerox then used this information to develop a hiring process focused on these crucial qualities, leading to better hires and increased sales performance.
Similarly, Hilton Worldwide used data analytics to optimise its recruitment process and improve candidate quality. They analysed data on candidate feedback and new hires’ success rates to identify improvement areas. For example, they found that candidates with a positive experience during the recruitment process were more likely to accept a job offer and perform better once they started working. Based on this insight, Hilton changed the recruitment process to improve the candidate experience and ensure a better fit for the company culture, resulting in higher-quality hires and reduced turnover.
At Google, data analytics is a core part of their recruitment process. They use various tools and algorithms to identify the best recruiting channels and assess candidate fit for the company culture. For example, Google uses data from their employee surveys to identify the traits and qualities of their top-performing employees, which they then use to inform their hiring decisions. Data-driven insights have greatly helped their recruitment process in attracting top talent and maintaining a highly productive workforce.
Final thoughts
Data analytics has revolutionised recruitment, making it more efficient, cost-effective, and data-driven. It helps identify biases, improve diversity and inclusion efforts, and enhance the candidate experience. Monitoring key metrics allows recruiters to measure the effectiveness of their recruitment process and make data-driven decisions.
Companies like Xerox, Hilton Worldwide, and Google have successfully implemented data analytics in their recruitment processes, resulting in improved candidate quality, reduced time-to-hire, and an increased likelihood of successful hires. With the increasing demand for talent and competition in the job market, companies that embrace data analytics in recruitment will have a competitive advantage in attracting and retaining the best candidates.
In conclusion, data analytics is not just a buzzword in the recruitment industry but a game-changer. The intelligent approach to recruitment involves utilising data analytics tools to make informed decisions and optimise the recruitment process. With the benefits of data analytics becoming more evident, it’s time for recruiters to step up and embrace this approach to stay ahead of the competition.