Being able to make data driven decisions through recruitment metrics ensures you’re spending your valuable time and recourses in the right places.
What is Data-Driven Recruiting?
Data–driven recruiting is when you use tangible facts and stats to inform your hiring decisions, from selecting candidates to creating hiring plans. With this complete picture at their fingertips, recruiters can easily and effectively meet the demands of the organisation.
Benefits of Data-Driven Recruiting
Data-driven recruiting is taking off because it offers tangible business benefits:
- Increased business performance, including higher revenue, higher customer retention, more upsells and higher referrals. It allows you to attract and retain the best talent available in the market.
- You can significantly increase your chances of making the right hires. Resulting in employees staying longer, positively contributing to the culture of the company and performing well over time.
Getting the wrong fit means a negative impact on business performance, on the overall culture, on the brand itself.
What are the traditional points of data used to evaluate success in recruiting?
The data you’d need to collect is:
- Percentage of Good Hires – In any given department, what percentage of your hires are top performers?
- Turnover Rate – What percentage of your new hires quits within a short period of time?
- Time to Productivity – How long does it take for a “successful” hire to start performing as well as promised?
- Hire Source – Where the employee applied from?
What limitations are being overcome?
While a candidate can be the most charming person you’ve ever met, that doesn’t mean they’re going to do well in your company. Previously the technology that was available limited the organisations ability to make an accurate hire.
- The lack of a feedback loop and absence of information hinders the recruiting effort and creates uncertainty in the hiring process. It makes it difficult for a business to determine the success of a hire’s performance.
- Performance software shows an organisation what the performance is. Unfortunately, they do not help identify what makes the individuals perform.
What are the emerging sources of data critical to hiring?
As organisations look to align people and business objectives, the following metrics are now emerging:
- FitScore – A tool that matches candidates to jobs through a “fit score” based on career experiences and skills. These technologies take pre-existing social data and information and then apply advanced cognitive capabilities to deliver actionable analysis.
- Quality of hire – This is essentially the value a new hire contributes to the company’s overall success. This is measured based on various indicators, like an employee’s performance and tenure at the organisation. It closes the feedback loop on the employee journey. This can be achieved with a fit-to-role platform that connects the hiring evaluation to the performance metrics.
Conclusion
When used well, recruitment metrics help you evaluate your processes and ensure you’re bringing critical talent into your organisation. Tracking these more sophisticated recruitment metrics to gain richer data and inform your strategic decision making. It is important to keep in mind that some are best tracked together and that analysing numbers in context is crucial. A source of hire might bring in fewer applicants, or contribute to fewer hires, but if the quality of these candidates is excellent, then it’s definitely worth the investment.
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