Nowadays, companies are changing rapidly and it is difficult to keep up with all the operations carried out on a day-to-day basis. For this reason, data analysis is responsible for transferring the information collected in numbers and providing figures of the operations. Data analysis is an internal setup function performed to present numbers and figures to all parties involved in business operations.
What is Data-driven recruiting?
Data-driven recruiting is the process of using data to help make better recruitment decisions. It’s not a new concept: companies have been using data for years to inform their hiring practices. However, with the advent of big data and machine learning, we’re able to harness more information than ever before and use it in more valuable ways.
Data-driven recruiting involves the use of objective data to make decisions about recruitment. Instead of making decisions based on hunches or gut feelings as we’ve done in the past, we can now make informed choices based on facts and figures rather than assumptions alone—allowing us to be more efficient at finding candidates who fit our company culture, values, and expectations.
Why data-driven recruitment is useful & resourceful for the future?
To better target candidates
By using data analytics, you can determine easier what your goals are to target talent and reach it effectively. Therefore, data helps us to provide a better service to our clients since through it we can understand what recruitment methods we should focus on, the tools to carry it out and establish a long-term action plan.
Data allows us to speed up the process by focusing on numbers and analyzing what skills are required, what experience is relevant, and how to avoid certain profiles.
To Promote Change & Innovations
The market is constantly changing and we need to stay up-to-date with hiring trends and machine learning sourcing platforms to continue to provide top-notch service. Leveraging data equals better strategies and managing goals by tracking progress with promising results.
To be more time and cost-effective
Data analysis provides you with a clear idea of where you should cut costs and the technology you are going to employ to reduce operational and production costs. Through the analysis of quantitative information, we can decide on the tools to optimize our recruitment process and the desired candidate features.
In short, data analysis makes every action precise and straight to the point to avoid filler activities that have no added value to the business. Data-driven recruiting isn’t just the future of hiring—it’s also the future of recruitment.
Benefits of incorporating data into the hiring process
Data allows us to understand and translate information in a clear and concise way from our very own Tribe.xyz dashboard.
Currently, the dashboard is composed of several tabs and graphics that contain the progress of each project, with the respective information on the performance of Talent Acquisition Partners and Talent Sourcers. These reports serve to easily translate, in an easier manner, our progression to our clients and track the areas we need to improve in the future.
Incorporating data can be beneficial for improving the recruitment process in the following ways:
Data support the decision-making process
Data serves to compare existing information, which allows you to better understand the impact that any decision you make will have on the business. Enabling your recruiting team to measure and adjust their strategy based on collected data, and recruiting analytics can help you make better, more efficient hiring decisions.
Improve the Quality of Your Hire
Data will allow you to better identify the best candidates for any given position, explore the skills and qualities that top talent owns, and collect data to help inform an even better and more efficient decision in the future. This can help reduce turnover, increase productivity, and help create a healthy and positive company culture.
Efficiently track stakeholder performance
Data serves to identify stakeholders’ influence, and it allows us to understand the progress of your project in a meaningful way. Data can also compare stakeholder performance against hiring KPIs and industry standards. In other words, your recruiting team can become more and more efficient over time as they can streamline their workflow and find areas where improvements can be made.
Boosting Efficiency & Optimizing the Cost of Recruiting
Hiring the right candidate for a position can be time-consuming. Through data analysis, you’ll be able to see which channels produce the highest quality leads and which ones haven’t been particularly helpful for your organization. Therefore, you will be able to reduce the time and cost of the hiring process.
Improving the candidate experience
Data collection allows you to identify which applicants are stuck in the recruiting pipeline and to reassess what’s wrong and/or if they’re a better fit for other roles in your pipeline. Therefore, you can improve your communication and use more proactive solutions in your recruiting pipeline so candidates are left feeling positive about the recruitment experience.
Enhancing hiring success and hiring forecasts
Recruitment performance ratios can show you how many applicants you typically need to make a hire. With a sophisticated analytics solution, even a high-performing employee can be traced back to the source of their application so you can increase quality hire rates as well.
Best Practices for employing the Data-driven Recruitment Approach
Collect data effectively
Having clear goals when using data is essential, as it can make it easier to identify the most useful data to collect in the process. Data collection becomes more useful the longer the period you are working on. The more information you have to perform the analysis, the more quickly and comprehensively you can identify persistent trends.
Determine the right metrics to focus on
The second process to establish a good approach to your data is to use recruitment metrics. These include the metrics most tracked by the company using recruiting analytics, including conversion rates, cost per hire, time to hire, source of hire and offer acceptance rate. Other metrics that businesses can also opt for include tracking quality of hire, candidate quality, retention rate, and so on.
Make it visually appealing
Using visualization tools to better understand the information and patterns hidden in your data, will help you easily identify opportunities to improve your hiring process and spot trends.
Dashboards are a fundamental tool that provides a concise and accurate approach to recording, analyzing, disseminating, and presenting data findings in a way that is easy to interpret and make decisions for the business. In Tribe, we use dashboards and tools such as Power BI to represent the data collected.
It is essential to acknowledge that as revolutionary as incorporating data into the talent acquisition process must prove to be, it has its limitations.
No explanations behind
The data will not tell you or explain why something happens. You can get insights by combining different types of data, but you still need to know how to interpret your findings.
Data is providing insights, not solutions
Data shows the situations from different angles and is indicative of how well a team, a pipeline, or an entire hiring process is going but it will not offer solutions. It is up to the people who use the data to carefully review and take into account the indicators when evaluating the data collected.
Let’s wrap it up!
Whether is for enhancing hiring quality, cutback on hiring costs or simply developing a better recruitment process, by finding a strong ally in data and analytics-backed hiring and by leveraging the techniques and tools that best suit your purpose, you can create a top-notch hiring process and build a more results-driven workplace. As a recruitment consultancy committed to providing strategic talent acquisition solutions by employing a streamlined data approach, we offer a range of solutions within our in-build tools, like recruitment analytics, candidate sourcing, and recruiting task management.
To find out more about how we can aid you in employing a data-driven recruitment strategy, get in touch with us today.