Recruitment analytics is the next big thing in hiring, as it’s hailed as a much-needed revolution in the complex and tedious task of recruitment. 78% of large companies rate people analytics as important as well as urgent for their business. So before we dive into the implications of it, let’s answer the question, ‘what is recruitment analytics?’
Recruitment analytics is the use of data and predictive analytics to discover and interpret useful patterns in order to make better hiring decisions. It involves tracking, collating and analysing candidate and employee data that helps you hire faster and better. Recruitment analytics answers important questions such as :
- Which sourcing channel delivers the best candidates?
- What is the total cost of hiring for a position?
- What is the employee turnover rate and what are the reasons behind it?
How does recruitment analytics help us make better decisions in hiring?
Recruitment analytics tools equip you with the right information which allows you to understand important patterns of hiring. By using these patterns to make data-backed hiring decisions, you can effectively identify the best sourcing channels of hiring as well as your top candidates. Consequently, you can pick the best talent for your open positions with clear and concise reasoning. Additionally, doing this will allow you to minimise the time you take to hire since you can use the data to sift through the potential candidates at a greater speed as compared to narrowing them down manually. By probing the candidate and employee data, you can easily recognise the recruitment bottlenecks and streamline the recruitment process with more efficiency. Overall, you can deliver better hiring results and ascertain the best hiring sources by using recruitment analytics metrics.
The Importance of Recruitment Analytics
Recruitment analytics has been gaining increasing traction among businesses around the world. Its growing importance can be summed up with the following reasons :
Improve your quality of hire – One of the major ways that recruitment analytics has taken a front seat in hiring is by helping recruiters identify quality candidates and analyse the common factors of the best hires. As a result, you can match the best-suited candidates for the roles that you’re hiring for. Thus, the quality of your hire is improved and turnover rate is reduced.
Track Performance – With data-driven analytics, you can track your recruitment performance against your KPIs (key performance indicators) such as time-to-hire, time-to-fill and age-of-job. By obtaining insights into your recruiting team’s performance, you can make the necessary changes and optimise the workflow.
Minimise Costs – With recruitment analytics, you can ascertain the efficacy of job boards and third party recruitment consultancies. When you have useful candidate and employee data, it enables you to mitigate spending on channels that don’t deliver the right candidates. Thus, you can curtail the recruiting costs, even though you’re enhancing the quality of your hire.
Why did we start collecting data?
The advent of big data analytics has transformed the way we do business, and the change is seen spanning industries and sectors around the world. It allows businesses to predict future trends, make better decisions and achieve better returns on investment. It is no surprise when data is touted as the new currency of the world. When it comes to recruitment, data analytics equips businesses with the right tools to get good talent and reduce employee turnover. Evidence-based decision making has done away with interviewer bias and gut decisions. It has propelled the journey of recruiters’ method from “I think” to “I know”. In addition, it hands them the right criteria to be included in the job listing to get the best hire. Now, it is easy for a recruiter to find out what skills, behaviours and values make a successful hire that stays in the organisation for a long time.
Conclusion
Recruitment analytics has witnessed mushrooming popularity within organizations in recent years, owing to the massive benefits it offers. It helps HR departments overcome their major challenges such as the ability to identify and retain top talent. With the right data, they can boost motivation, engagement and morale within the workforce. Lastly, recruitment analytics helps them streamline the hiring process and bring down the cost of hire.
