These days, it seems like you can do virtually anything with data. That includes using it to hone and perfect your recruiting processes.
Not long ago, this wasn’t possible. Simply collecting and analyzing the relevant data was too expensive and time-consuming. Fortunately, digitization and automation have changed all that.
Numerous tools are available that allow companies to gather otherwise overlooked data and make sense of its implications. Businesses can also access multiple publicly and privately available data sets to amass even more information. All of this data can be used to create and implement better-recruiting strategies.
What is Data-Driven Recruiting?
Data-driven recruiting is simply an approach to recruiting that uses data to influence the decisions throughout the process. Recruiters can use data to help select candidates, determine recruiting methods, even select recruiting channels.
Used correctly, data-driven recruiting can save organizations money and lead to better results.
Data-Driven Recruiting Can Help Hiring Managers
Employee acquisition is an expensive, resource-intensive process. When it goes wrong, you are out the cost of hiring and must begin recruiting again.
By using data, you can increase the likelihood that your hiring decisions work out in your favor. This benefit can have a huge upside for your long-term bottom line.
Data can help hiring teams achieve a variety of important goals, including:
Making Objective Hiring Decisions
When hiring managers rely on their perceptions and intuition to make decisions, the results can be problematic. Sometimes, they are even biased.
However, the human factor is removed when hiring decisions are made using assessment results and other hard data.
Identifying Issues with Your Hiring Process
Are you failing to meet your diversity goals using your current recruiting and hiring methods? Are your job listings, recruiting pages, and other employment outreach channels failing to convert?
If you don’t know, data can help you find out. For example, a diversity report can help determine whether you are hiring enough people from protected groups.
Creating a Better Recruiting and Hiring Budget
Are you spending your hiring budget in the right places? If you use multiple job listings sites and other channels for recruiting, data analysis can reveal which ones are getting you results.
Setting Hiring Benchmarks
How many applications do you normally receive for each position you fill? If you know this, you are in a better position to know when you’ve received sufficient interest in a job you’ve advertised. If you haven’t, you know that you should continue recruiting.
By setting these benchmarks, you will better understand how well your recruiting efforts are progressing.
Justifying Changes to the Recruiting Process
You may realize that your company needs to change how it recruits, hires, and onboards new team members. However, it isn’t always easy to convince management of this need — unless you have data to present.
If you can provide compelling, data-backed evidence, you are more likely to receive the approvals you need.
Integrating Data Into Your Hiring Efforts
Now that you understand some of the value of using data in recruiting and hiring, how do you go about transforming your current methods?
Some steps that can help with the transition to data-driven recruiting include:
Starting with Simple and Impactful Data
The best data for you to start with will be easy to collect and analyze. Ideally, you should be able to use it to make a meaningful impact on your hiring. One key metric to track is your retention rate over some time. Other useful metrics include:
- Sources of hires
- Cost per hire
- Prospect experience levels
The best way to identify what you should track is to simply ask hiring teams and managers which information is most valuable. Once you know their questions and concerns, you can better determine how to use data to help.
Using Efficient Data Collection Methods
The easiest data to collect is the information that you already own and can readily access. You can mine data from your ATS system, via analytics software, or by surveying candidates and hires.
The data you collect may reveal a range of issues and opportunities. Your next step is to determine what you are going to do with it.
Some of the most common problems that are uncovered by recruiting data include:
Low Acceptance Rates
The data you collect may show that you are making offers but failing to convert prospects. If that’s the case, dig deeper. The data may also show other issues, such as:
- Poor candidate experience
- Compensation out of alignment with application expectations
- Failure to communicate position details effectively
Once you identify the disconnect, you can address the issue by improving your communication efforts, perfecting the candidate experience, or reconsidering your compensation packages.
Long Time to Hire
When you take too long to fill positions, it impacts scheduling and productivity. Data doesn’t just reveal that this is a problem; it can highlight why.
For example, you may need to begin hiring through different channels, automate the process for scheduling interviews, or improve your online applications.
Identifying Future Data Sources
Once you are successfully using the easily available data, it’s time to diversify. Start by identifying the information that seems to be missing from your recruiting efforts.
For example, you can’t know if your salary structure is adequate without looking at competitive insights on compensation.
As you begin moving towards recruiting methods that use data, you will determine where information gaps exist. Then, you can work to source the information you need to fill those gaps.