In the past, recruitment has been based fully on the work of recruitment professionals and their feelings and thoughts. The companies used to rely solely on interviews. However, with time it has become more and more inefficient.
With the use of big data, hiring managers now use a data-driven approach to recruiting, which allows them to better understand the hiring process and how to make it better. By using this approach, they can hire top talent by spending fewer resources and time.
What is data-driven recruiting?
In data-driven recruiting, hiring decisions are based solely on measurable skills and relevant experience. The professionals use facts and analyze data from their previous processes to create a better way of performing certain processes.
Data-driven recruiting analyzes a huge talent pool using technologies, processes, and data, identifying people who have the knowledge, expertise, and concepts to support enterprises in achieving their objectives.
The leading tech organizations use this recruiting approach to screen resumes and identify the best candidates that meet the required skills criteria. There are many metrics, such as satisfaction scores, diversity, talent pool quality, etc, to track which allows for critical analyze the recruiting performance and how well the strategy is working.
According to Aptitude Research, despite the numerous benefits of a data-driven recruiting approach, only about 50% of companies actually track the efficiency and effectiveness of recruiting efforts.
The main benefits of data-driven recruiting
With the use of talent acquisition technology, you can consolidate all the data into one location where you can view the most recent metrics for applicant experience, sourcing efficiency, and total recruiting.
When a company is committed to boosting agility through utilizing recruitment data and analytics, then it has more chances of profiting from important benefits, including the following:
1. Better sourcing effectiveness
By focusing on tracking the quantity and quality of hiring, data-driven recruitment may help you find more qualified applicants. Any firm can make sourcing a key strength with sound strategy, well-defined procedures, capable CRM systems, sourcing technologies, and intelligent analytics.
According to the research, 94% of recruiting professionals agree that specialized software increased the efficiency of their hiring process.
2. Enhanced DEI initiatives
You may save time and eliminate uncertainty when hiring for diversity by using insights to help you uncover outstanding DEI candidates. And doing so makes it easier to choose people who will raise the company’s performance standards.
3. Decreased hiring costs
Your company may aid in lowering total hiring expenses by concentrating on the greatest sources of talent and optimizing the hiring process using data-driven insights. By ensuring that you recognize and address hiring barriers, you may shorten the time it takes between posting a job and having it filled.
Your cost per hire will go down, and the hiring process will run more smoothly if you simply concentrate on the traits or factors that will produce the greatest possible employees, saving the business money. Costs can be reduced or moved to a platform that better meets your needs.
4. Higher quality hires
You may choose better which applicants to focus on with the help of data-driven analytics. The quality of your new recruits may be greatly improved by having a thorough awareness of who your finest applicants are and what qualities may make them successful in the post.
5. Predictability of hiring needs
Once you become proficient at data analysis, it will be a lot simpler for you to see patterns and trends in your hiring requirements. It will be possible for you to estimate the expenses of employing new staff to fill those positions if you are aware of when and how your organization operates.
By using a proactive recruiting plan, you can also utilize the data to forecast when you’ll need someone to fill the position you’re attempting to fill.
What is the cost of bad hiring
Many companies don’t realize it, but the cost of bad hiring is quite high. According to a CareerBuilder survey, 3 out of 4 employers are affected by a bad hire. And the cost of this hire is around $15,000.
When it comes to missing a good candidate, the costs rise to nearly $30,000. With a data-driven recruiting approach, these costs may be reduced or even avoided, as data provides a clear picture of what should be improved or changed for better results.
When you are clear on your goals, you may look for the information that will help you get there. It would be a big error if you didn’t use data for something as crucial to your organization as recruiting.
There are so many chances out there that organizations can be losing out on, in addition to resource losses. Data-driven recruiting will provide you with all the knowledge you require to select the top candidates and streamline procedures to draw in qualified candidates.