HR it seems is the last frontier in the corporate set-up when it comes to adopting data driven analytics to improve processes. It is no surprise therefore that 75% of new hires turn out to be bad hires. More and more HR departments are joining the manufacturing, marketing, accounting functions to adopt Big Data to improve their business processes. Candidate sourcing and recruiting based on data models has become more cost effective and efficient in large part due to sophisticated cloud based analytical solutions.
What is data driven recruiting?
Recruitment till now has been very intuitive, after all decisions are made based on a few minutes from the candidate’s resume and how much they impress the hiring manager during the interview. Data driven recruitment uses facts and statistics at every stage of the hiring process. HR teams that use data driven tools have shown proven ROI in the form of both faster and better hires. Xerox has been using algorithm based models in recruitment’s and has seen a drop by 20% in their call centre attrition rates.
New hiring insights from new data
When you have a recruiting software platform that links to candidate sourcing and incorporates a consistent and quantifiable candidate assessing model, it means information that can be accessed in real time. Volume of candidates as well as quality of candidates becomes more transparent and more efficient processes can then be streamlined.
One of the ways data driven recruitment makes for better hiring is in making HR teams aware of new channels for hiring. Are you aware that 49% of professionals are following on social media, companies that they are interested in? This way HR managers already know a new set of possible hires who already are interested in working with you. Also professionals in your company are networking or connected to similar professionals. This means an even wider referral base that you can tap into when needed.
A positive candidate experience starts right from the first step of applying for a position. If you have a career page on your website with an application process then this bit of information is for you. Did you know that almost 60% of candidates leave without completing the application process? The main reasons are the application process is not mobile friendly and often is too long and complicated. Just compare yourself with a Job site when it comes to user friendliness. More the information that has to be filled in then more the bounce rate on your page. If it is in the resume then why ask for the information all over again? Instead invest in a good resume parsing software.
It is important to know just what data you need to be accessing. Cost, quality and speed are the end results of any data-driven analytical process. To get to this, 3 main metrics should be focused on
1. Sourcing metrics
Candidate sourcing and hiring makes up a fairly large chunk of a HR team’s annual budget. Most companies use a number of channels to reach out to potential candidates – company career section, job boards, LinkedIn Recruiter, referrals and more. However, which channels work best for different kinds of positions is just never tracked and even if it is, it’s cumbersome and can take a lot of man hours to get such reports together. An insight into this can help the HR team to allocate their budgets better based on different positions. Resumemantra recruitment analytics across our many clients show that there is a hefty cost saving when this information is available whenever needed rather than at a year-end analysis when it is too late to make a change.
2. Time-to-fill Metrics
It is vital to know how long it should be expected to take to fill a vacancy and if there is any bottleneck at any stage of the hiring process. You will also want to see this data by departments, teams, locations among other information. This will help create an SLA and measure it across teams so that there is a more standardized process set. To make this effective, everyone involved in the hiring process will need to access the applicant tracking system (ATS) rather than work through email communications or spreadsheets.
3. Hiring Productivity Metrics
The recruiting cost is an important indicator of both efficiency and productivity of the recruiting team. When a position goes unfulfilled by an in-house recruiting team then expensive placement fees have to be factored in when outsourcing to a staffing agency. This is apart from the loss in revenue because of an unfilled position. To calculate this
Hiring Productivity cost = ((Total company revenue/ total number of employees)/ Total number of work days)) x new hires past due date of hiring