The Use Of Data In Recruiting and Hiring

The Use Of Data In Recruiting and Hiring

by Ryan Kohler

Finding the best way to identify potential job applicants can be a challenge for any HR representative. A large percentage of companies are using ‘big data’ and analytics to help them effectively recruit employees. In fact, more than 60% of companies recently surveyed by Forbes have stated they use analytics to help them recruit. Here are some of the reasons why using analytic tools is a smarter way to recruit.

Finding the Ideal Employee

Using analytic tools is a smarter way to recruit

One of the major problems HR representatives find is how difficult it is to find employees who are invested in staying with a company. Retention saves a company money in the long-run as organizations will end up spending roughly $15,000 -$30,000 on training per employee. What analytics can do is bridge that gap between finding the people that are career-driven and the individuals hoping to use a company as a stepping stone on their resume. Using predictive analytics, a company will find people that provide them with higher returns in the long-run. According to the same Forbes study, the stock market returns are over 30% higher for the company using analytics to recruit employees.

Finding Talent

Every company understands the importance of finding employees that have talent to build their organization. Several organizations already implement analytics into their routine for marketing and data research. It is common in the business world for advertising, but HR is finding it incredibly useful as payroll is one of the largest expenses of a company. When a company can slash costs, and still be able to find the talented employees they need to properly expand the company, the opportunity is attractive. Spending time on several interviews can often leave a hiring team burnt out without a single prospect to consider. This will allow you to identify the potential workers who are a great fit for the company, but will actually thrive in the workplace. These individuals are likely to stay with the company for a longer period of time, and they provide you with a higher work output and creative thinking ideas. One example of a company using this method is Xerox as they doubled the number of employees in their call centers who stayed for at least 6 months.

Using predictive analytics, a company will find people that provide them with higher returns in the long-run

Tracking the Applicants

One of the major benefits of ApplicantPro is the ability to effectively track job applicants. Not only will you be able to screen the applicants based on your priorities, you can reject people who do not fit the criteria. The individuals will be sent communication about their status, and will be notified that they are not in consideration for the job.

Correct Implementation of Analytics

The way each company plans to implement this kind of data is different. The data will be altered based on the company’s analytics using job applications that have previously been submitted. Some of the skills will be listed on the applications. This will allow a company to filter individuals with certain degrees, or individuals from a certain University. Another method companies use is having their job applicants play a video game to see strategy and identify certain creativity elements in employees. Comparing analytics recruiting to sports athletes, follows a similar system. Several sports teams will place their potential players through a series of physical and mental tests to see how they perform. Companies are simply building upon this by focusing on the mental test side of things to find the best candidates for the job. Take a look at the employee reviews on GlassDoor. This provides organizations with an in-depth look as to the state of their company based on employee reviews. It will allow you to see how analytics are helping you in the hiring process, or if they are rejecting the people you should be interviewing.

Future Growth

While using analytics is a great way to find candidates for the job, it can be used to help you with existing employees. Consider using these metrics to help you find the employees with talents in specific areas. Will they be able to excel in a different department within the company? Companies who use hiring tools and analytics have found it helps to foster healthy competition within the organization, and gives them advantages over their competitors in the industry.

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