We have come a long way from the time when recruiters used to simply rely on their own decision making prowess and intuition to make hiring decisions. With increasing capacity to collect wide arrays of data points and advancements in data analytics and artificial intelligence, the field of recruiting is becoming more and more data driven.
As smart recruiters move towards harnessing the power of data and making smarter and faster hiring decisions, let’s take a look at what data driven recruiting is and the benefits it brings to modern day organizations.
What is Data Driven Recruitment?
Data driven recruiting is a hiring strategy in which recruitment planning and decision making is based on data acquired through HR software such as Applicant Tracking Systems. Harnessing the power of historical data, companies can work towards improving their talent acquisition process, overcoming the challenges in recruiting and making hiring efficient and less time-consuming.
78% of recruiters that use an ATS have reported that using recruitment and human capital management technology makes finding skilled talent easier than ever. Using recruitment management software like MyNextHire, recruiters get access to the vital data and key metrics that they need to track to streamline the recruitment process.
The pool of data available to modern day recruiters is constantly increasing. Subsequent processing of this vast amount of data and drawing actionable insights from it is a huge challenge. This is where HR analytics come into the picture.
Data driven recruiting can turn out to be the key differentiator in the competitive hiring landscape resulting in a significant business advantage.
Key Benefits of Data Driven Recruitment
Harvesting insights from the data repositories has several benefits for organizations.
1. Identification of the right sourcing channels
Your job posting may get published on a number of channels- social media, company’s career page, range of job boards. However, where is the high quality talent coming from?
Knowing which sourcing channels have resulted in acquisition of the right talent historically can help recruiters plan and execute candidate sourcing more effectively. For example, if data unveils that the most high performing candidates were sourced from one particular channel, you can prioritize that source during the future recruitment drives as well.
2. Elimination of bias in hiring
When the hiring decisions are supported by solid data rather than instinct, it results in more strategic decision making while eliminating chances of human bias at the same time. Since the hiring decisions are based on tangible data, it results in objective decision making. Basing the hiring decisions on quantifiable data points after a thorough analysis of multiple variables, removes elements of uncertainty.
Relying on data also eliminates the chances of recruitment being affected by human bias. If you are basing your decision making on a collection of predefined data points and hiring a candidate that checks all the boxes over one that appears more charming during the interview, the quality of hire and chances of hiring success dramatically go up.
3. Lowering of cost-to-hire
Availability of precise data on the impact of your spending naturally results in enhanced budget allocation decisions. The right data can help you significantly reduce the cost of hiring and onboarding talent within your organization. Identification of the most efficient sourcing channels can reduce the duration of the hiring cycle bringing down the costs.
Data driven insights can also reduce the process inefficiencies resulting in slashing down of the hiring costs. For example, if you discover that the candidates being sourced are not a definite match for the role you are hiring for, you may decide on incorporating a prescreening questionnaire or skill match to bring down the hiring time and subsequently the cost involved. Using an ATS like MyNextHire comes with an in-built skill percentage match that ensures that the application technically aligns with the job requirements, bringing down the cost.
4. Reduction in time required to hire
Data-driven recruiting involves mapping of a wide range of data throughout the recruitment process. Hiring insights help recruiters work smarter. The mundane repetitive processes that do not yield significant results can be identified and removed from the hiring process, thus ramping up the speed to hire.
Using data-driven decision making also forms a solid foundation for recruiter’s decision making, removes any aspects of ambiguity and makes the process faster. Predictive analytics can also help organizations make talent requirements forecasts in advance, allowing the recruiters to be better prepared while managing a robust talent pipeline to quickly fill up the vacancies that are likely going to be created.
5. Identification and elimination of bottlenecks in the hiring process
A centralized dashboard that gives a bird’s eye view of the entire recruitment process can help recruiters identify what is working and what isn’t. Having a data-driven recruitment strategy allows the hiring managers to have a real-time update of the operations. Data can help them in mapping of historical performance, identification of trends and prediction of future opportunities.
Use of HR metrics to identify and eliminate the inherent limitations within the recruitment process can be a great asset in overcoming the process optimization challenges. With a holistic view of the current performance, recruiters can prioritize areas that require greater attention to detail. Data can help recruiters spot what’s wrong in the current hiring process, facilitates uncovering of the reason behind the same and assists them to take corrective measures to rectify the same.
How to get started on data-driven recruitment
Performing HR analytics, tracking relevant data and deriving actionable inferences is not a one time task. Having the right recruiting software in your arsenal that makes data analytics a breeze and provides you with the information that you need is the key to formulating a data-driven recruitment strategy.
The ATS that you choose to streamline your hiring process should be able to collect and analyze the recruitment data you need to optimize your hiring process. It needs to take a holistic approach in capturing the right metrics and give customized and configurable reports on a periodic basis.
Conventional Applicant tracking systems just parse through the candidate applications and help recruiters in the screening process. The data is usually isolated and kept in silos. MyNextHire is a comprehensive recruitment management software that understands the recruiters need to access actionable data that is easy to comprehend.
Ready to jump onboard an ATS to help make your recruiting process data-driven? Try MyNextHire to identify and remove bottlenecks and take your hiring to the next level. Request a demo today.