Data-driven recruitment is a scientific approach for recruiters and hiring managers to effectively analyze a pool of talent. The result is being able to identify and shortlist candidates who possess the right skills, mindset, and experience.
Traditionally, the HR recruitment process was cumbersome, slow, and was effort-intensive to review the resumes of all applicants and complete a string of interviews. And any uncertainty in selecting final candidates was often concluded on gut feel decisions that resulted in bad hires.
HR influencer, Jörgen Sundberg estimated that onboarding an employee costs $240,000 on average. The U.S. Department of Labor calculated that a bad hire costs a company at least 30% of the employee’s first-year earnings. For small and medium-sized businesses, an investment like this in the wrong person can pose a serious financial risk.
However, technology has enabled customer and employee data to become an organization’s biggest asset offering an effective alternative to the traditional approach. Properly mining data provides rich information to help recruiters and hiring managers with corroborated decision-making.
“If we build trust and use people data ethically, then we can unlock significant value both for the organization and for the people who work for it.” – David Green, Executive Director at Insight222
How does Data benefit Recruitment?
Data-driven recruitment uses metrics to analyze a wide range of recruitment KPIs such as finding quality candidates, tracking the performance of new hires, time to hire, cost per hire, and many more.
So, let’s take an in-depth look at 3 key benefits that will motivate recruiters get started with data-driven recruitment.
1. Minimize reliance on emotional decision-making
It’s common for recruiters to end up with a shortlist of top candidates where it’s difficult to find distinguishing factors for an obvious final decision. In this case, the outcome is usually driven by subjective bias.
However, data-driven hiring can reveal previously unknown variables that push a particular candidate to the front, like having an attribute shared among your current top performers. By collecting and scrutinizing collective recruiting data, you can be objective in your selection process.
2. Decrease cost per hire
Data-driven talent acquisition will also start to show a decrease in hiring costs. Using assessment software to show you qualitative scores of thousands of candidates at once will save time and help focus your efforts on interviewing only qualified candidates. Data-driven recruiting and hr analytics offer tangible results to optimize top-of-the-funnel recruitment.
3. Improve candidate experience
Using analytics and reports can help recruiters to streamline the recruitment process and improve the overall experience for candidates. By evaluating data, you can pinpoint areas where candidates drop off because it’s too complex, irrelevant, or tedious. These data points let you remove or improve the roadblocks that could be preventing top talent from completing the application process. A unique and enjoyable process will also build your company brand with candidates whether the person is hired or not.
In a Nutshell
Data-driven recruitment will help you identify patterns and trends for future business-impact decisions. It is the new frontier that allows companies to stay ahead of the curve. The more the process is repeated, the more data is accumulated enabling hiring teams to tap into new insights and rely on fact rather than luck.
Recruiters can start by discussing key performance indicators relevant to your organization and the recruitment process. This is the first stage of developing your new data-driven recruitment process.
WeCP (We Create Problems)‘s powerful analytics and reporting helps you evaluate candidates on their qualitative score, time taken to perform a test, choice of sequence, chances of guesswork, and more to help you make informed decisions.