Data analytics help companies reduce costs, optimize performance and find more efficient ways of working and storing data.
As talent demands grow each year and the competitiveness of the job market reaches new heights, fast, effective, and precise recruitment is more necessary than ever before.
Enter recruitment analytics, candidate databases, and predictive analysis.
This data-driven approach allows organizations to make informed decisions on hires and have a constant potential candidate talent pool at their disposal.
But what specific benefits can recruitment analytics bring to your company?
Beyond cost reduction and effectiveness, this article aims to provide you with the benefits of recruitment analytics by pinpointing the top 10 benefits of a data-driven approach to recruitment.
The top 10 benefits of recruitment analytics:
1. Identification of the proper sourcing channels
Using hard data and hiring analytics can help your business identify and focus on the proper sourcing channels. Think of it as recruitment conversion optimization.
Suppose you are looking to attract a given type of candidate and discover that a particular channel is the best way to attract and convert them from candidates to employees. Then, wouldn’t it be the wisest decision to focus on that specific sourcing channel?
Knowing which sourcing channels have historically resulted in the highest quality and most effective acquisition will help your HR department plan and execute candidate sourcing more efficiently.
2. Uncovering areas of improvement
A centralized dashboard that gives a bird’s eye view of the entire hiring process can help your business identify what is working and what should be tweaked or fixed.
Using HR metrics to identify limitations and detect bottlenecks has significantly improved the optimization process.
A holistic view will help recruiters prioritize areas that require greater attention. And data can allow your HR team to detect what’s wrong in your company’s recruitment process.
This process optimization will facilitate uncovering the reasons behind the issues at hand and assist in taking corrective measures to solve the problem completely.
3. Improve employee engagement
Employee engagement is establishing a system to motivate employees and improve retention rates, and it starts on your new employees’ first day at work.
Recruitment analytics can take the guesswork out of employee engagement by helping your company’s HR department create an optimal employee experience based on hard data.
4. Access to live analytics
Recruitment analytics will provide your company with real-time HR performance data. This is accessing the latest information on an hour-to-hourly basis.
Your company can use this information to quickly identify current and future hiring trends and adapt to them by enhancing talent acquisition practices and funneling resources where needed.
5. Increase the quality of hires
Using analytics in the hiring process allows HR teams and companies to discover what makes a good candidate - and a bad one, too.
A data-driven recruitment lens goes beyond speed and cost-per-hire. It also focuses on hire quality.
Candidate quality is based on, but not only, the following metrics:
- Qualified applicants-per-requisition - whether your sourcing practices are delivering top-quality candidates
- Resignation and involuntary turnover after a set time of service
- New hire performance by lead source
- Top talent characteristics
- These metrics will help your company accurately target the best candidates that align with your organization’s needs.
6. Predict speed of hire
Data-driven recruitment can speed up the hiring process and predict the hire’s speed.
Predictive analytics is an excellent tool for presenting hiring time estimates to stakeholders.
With analytics, your company will confidently know how long it will take to fill a specific role and the time spent on each stage of the hiring process based on a vast database of past hires.
Likewise, a data-driven approach can reveal the bottlenecks slowing hiring and help inform decisions to fix them.
7. Improve the candidate experience
A good candidate experience has become a must-have for companies worldwide. In short, it’s “putting the candidate first”.
Clever use of analytics can bring the factors that impact candidate experience to the forefront, and with workforce intelligence solutions, quickly measure and tweak each approach.
It, thus, decreases the likelihood of candidates withdrawing their applications and the odds of losing top talent to the competition.
8. Embed diversity and inclusion into the recruiting process
Diversity, equity, and inclusion (DEI) have become an increasing market demand and trend in the last few years. And this trend will only continue to grow as Millennials and Centennials workers replace soon-to-retire generations.
The newer generations are strong proponents of DEI, as they demand it. A survey by Deloitte showed this phenomenon, as 83% of Millennials are more actively engaged when they believe their organization fosters an inclusive culture.
Recruitment analytics will help reduce hiring bias, hit your company’s diversity targets, and ensure equity.
9. Identify workplace and employee trends
The most critical impact data and analytics can have on your business is identifying short and long-term trends and then adapting your company’s hiring efforts to match them, thus further optimizing your business’s hiring process.
For example, in today’s candidate-driven market, companies have to adapt to a high-impact market trend where applicants hold the leveraging power.
This trend requires organizations to shift their hiring practices toward satisfying candidate demands to attract and retain top talent.
Identifying trends with certainty and testing and adapting their recruitment efforts will result in your company achieving employee happiness, greater productivity, better sourcing processes, and overall greater business success.
10. Improve retention levels of top-tier talent
Attracting, recruiting, selecting, onboarding, and training is a high-cost and resource-intensive process. Therefore, curbing turnover, particularly among high-performing top talent, is critical.
Predictive analytics can drastically improve attrition rates by measuring historical data to predict turnover before it happens.
By combining machine learning algorithms with employee data, your company will be able to identify specific reasons for employee turnover and work on mitigating the push factors that lead to top talent flight risks, even before they join your organization.
The job market has become increasingly competitive and hungry for top talent.
For this reason, your company must upscale its hiring efforts and make them faster and more effective.
A data-driven recruitment strategy will potentially provide your organization with the best candidates, improve hiring speeds, and drive your business’ revenue up.
Which of the listed benefits do you think would impact your organization the most?
If top talent is your main concern, you can learn more by scheduling a demo to discover how to search, recruit, and connect with untapped talent without moving from your office.