The recruitment process is indispensable to any business. It can be complex and time-consuming, generating huge amounts of data. To manage this data, companies are turning to recruitment management systems, data-driven hiring, recruitment software, and applicant tracking systems.
HireME offers a range of insights to help employers improve their recruitment strategies. HireME’s analytics dashboard provides businesses with an overview of their recruitment activity.
It also provides employers with an understanding of their recruitment trends.
Before we discuss more on our recruitment management system HireME, let us get to know the basics like what data-driven hiring is, HR metrics, and the advantages of data-driven hiring in a recruitment process.
What is Data-Driven Hiring?
- The meaning of data-driven hiring encompasses making objective and informed hiring decisions using tangible facts, data, or statistics.
- A recruitment management system helps in recording such statistics that provide valuable insights into the recruitment process.
- Earlier recruiters relied solely on traditional ways of hiring with no figures or variables to optimize the hiring process.
- Now more and more businesses are going the data way to stop biases from creeping in while making hiring decisions.
- The data involves HR metrics that need to be tracked so that the hiring process can be made more self-sufficient.
- Data-driven hiring has a lot of advantages to offer which will make you realize why it is so essential in modern-day recruiting.
- It not only makes the hiring process more efficient but also lowers costs and propels one to improve their overall hiring process.
Which Hiring Metrics Do You Need to Track?
The hiring metrics you need to track are as follows:
Cost per Hire
- Cost per Hire is the most important aspect of recruitment.
- It involves the expenses that are incurred to bring an employee into an organization.
- Cost per hire may include recruitment costs, administrative costs, equipment, travel, and other benefits.
Time to Hire
- Time to hire is the period taken to carry out a recruitment process and therefore involves all the steps in recruitment right from sourcing to onboarding.
- Time to hire is also an important metric that fixes the cost per hire.
- A long time to hire indicates bottlenecks in the recruitment process.
Source of Hire
- Source of hire refers to the source from where the candidates are brought in line with the recruitment process.
- This may include various social channels, career websites, or referrals.
- Determining which source is proving profitable for the organization can help in improving the recruitment process.
Candidate Experience Scores
- Candidate Experience Scores or Candidate Net Promoter Scores (cNPS) take feedback from candidate experience during the recruitment process.
- This metric is to understand how happy your candidates are.
- Of course, this metric will help in optimizing the candidate experience after one spot out why candidates are dropping in negative feedback instead of positive ones.
Job Offer Acceptance Data
- Job Offer Acceptance rate (OAR) is the percentage of candidates who have accepted a formal job offer.
- It helps in determining the quality of your recruitment process.
- OAR above 90% is considered ideal as it shows that the candidate’s expectations and the company’s requirements coincide.
- To improve OAR, you may conduct a candidate survey and gather valuable feedback from them.
New Hire Turnover
- The new hire turnover rate is calculated by dividing the number of new hires who left the job in a particular period by the total number of employees who quit during the same period.
- In simple words, it refers to the new hire who joined your company a month or two back and is leaving the company.
- It could happen because of a variety of reasons like poor onboarding experience or maybe the candidate is not happy with the work culture and environment.
- Therefore, the recruitment process must always be transparent and communicative (INTERNAL LINK TO BE ADDED) right at the onset and the onboarding experience must also be given due attention.
New Hire Retention Rate
- Not only is the employee turnover rate an important HR metric but the new hire retention rate is equally important.
- It shows how better your organization is fairing in its recruitment processes.
- This metric highlights the positive aspect of your hiring by indicating the employees that are preferring to stick with the organization.
- The New Hire Retention Rate puts the limelight on what steps you are taking or what guidelines you are following to make your recruitment process more efficient and effective.
What are the Advantages of Data-Driven Hiring?
- It is critical to judge which recruitment channels are bringing in qualified candidates.
- Analytics allows you to track such social channels, which also helps in calculating the cost per hire.
- Invest your money in the channels that are proving profitable for the company.
- Leave out the rest or dedicate minimum time to them.
- For example, if you have a higher number of recruits from Google advertisements, you must pay attention to it as it is giving you higher ROI.
- Leave out Linkedin if the opposite is the case.
- A recruitment management system helps gather valuable data through the selection process.
- Historical data from applicants like qualifications, skills, and years of experience.
- Assessment tests that help in testing the candidate’s capabilities, personality traits, and preferences related to work.
- Job assessment data that scores candidates based on their performances during the screening and interview phase.
- This data backed by a recruitment management system helps in arriving at a more objective and legally defensible hiring decision.
Improving Candidate Experience
- Candidate experience starts from the first contact made with the recruiter and continues till the onboarding phase.
- Net Promoter Score can help to measure the candidate’s experience.
- A Net Promoter Score measures what the candidates like or dislike about the interaction with your organization during the recruitment process.
- The feedback can help identify key areas for improvement.
- The other way to measure candidate experience is candidate job satisfaction.
- Candidate job satisfaction is dependent on whether the job role and the work culture meet the expectations of the recruit.
- The candidate’s job satisfaction score will provide insight into the above.
Speeding up Time-to-Hire
- Analytics in a recruitment management system will help you recognize bottlenecks in the hiring process.
- Once you identify these bottlenecks, it will be easy to eliminate them.
- Determine the period you are taking for posting advertisements, sourcing, interviewing, selecting, and onboarding.
- When you have metrics like time to hire, you can automatically identify the steps that are taking up more time than necessary and work on them.
- For example, if your application process is taking up more time, then you may skip the application forms and instead have your candidates submit only the resume.
- 42% of employers feel that conducting interviews takes up a lot of time and our analytics might also confirm that. The easy way to solve this is to auto-schedule interviews.
- Unconscious biases creep in during recruitment because they are unconscious and unwittingly committed.
- Having a look at the analytics can significantly reduce all your unconscious biases.
- It is because you will be making informed decisions based on facts and figures.
- When you stop discriminating against specific races, gender, caste, or creed, you will have a diverse workforce that can unleash a lot of innovation in your workplace.
- In addition, you will be promoting the ideals of equality and ensuring that you fairly treat everyone.
- You can forecast your hires through recruiting yield ratios.
- This tells you how many applicants you require to make one hire.
- In other words, this metric will tell you what percentage of candidates are moving through the different stages of a recruitment process.
- This forecast tests the success of different recruitment strategies.
- Having this metric is very useful for improving your recruitment process.
- For example, if your job board is receiving 800 resumes and only 1% of them are passing through the screening phase, it shows a lower recruiting yield ratio.
- This might be due to a badly written job description or a tedious application filling process.
- Therefore, you can use this insight to understand the reason behind it and solve it accordingly.
Working On Areas That Need Improvement
- You may need to identify and work on key areas in recruitment.
- Analytics helps you in identifying such key areas which may include:
Cutting Costs: Your data will help you reduce and overcome challenges related to expenses. If you notice that your budget is flowing out of your hands, you need to cut down the cost per hire and make fewer expenses on advertising, or the number of applications per channel. Instead, try employee referrals to source candidates at reduced costs.
Reducing Time-to-Hire: To focus on recruitment strategies like reducing the time-to-hire, you need to follow up on related metrics like Time to fill, time to productivity, and time to hire. When the time to hire is reduced, you will notice improvements in other areas as well like the hiring budget.
Quality hiring: If you want to have more qualified candidates down your recruitment funnel, take due note of metrics like source of hire, candidates per hire, retention rate, etc.
How HireME’s Data-Driven Insights Can Improve Your Recruitment Strategy?
- Recruitment management system, HireME’s Analytics reporting provides data on each of the aspects discussed above.
- This includes data about the number of job applications received, the number of applicants accepted, and the number of applicants who have completed the recruitment process. It also allows employers to measure their recruitment performance over time.
- As already stated, HireME offers insight into recruitment trends. This helps them identify areas for improvement and understand the recruitment process better. For example, HireME’s data can show employers how much time is spent on each stage of the recruitment process, helping them to identify where resources could be allocated more efficiently.
- HireME’s data-driven insights can also help employers identify the best candidates for a job. This includes understanding which types of applicants are more likely to be successful, and which qualifications and skills are most important for the role.
- HireME’s insights can also help employers create a more effective recruitment strategy. This includes understanding the right times to advertise job openings, and which channels are the most effective for attracting the right candidates.
- HireME’s metrics are invaluable for businesses as they offer meaningful insights that can help to improve the overall recruitment process.
Recruitment management systems, data-driven hiring, and applicant tracking systems have revolutionized the way businesses approach hiring and recruitment. These tools allow employers to make data-driven decisions when it comes to recruitment strategies and have a range of benefits for businesses looking to build a successful and effective recruitment process.
One of the key benefits of data-driven insights in recruitment is the ability to understand the current market and make more informed decisions about the types of candidates to target. By leveraging predictive analytics, employers can identify the types of candidates that are most likely to succeed in their roles.
HireME is an excellent platform that businesses should utilize to make their decisions more informed through data-driven recruitment.
Frequently Asked Questions (FAQs)
What is data and analytics recruitment?
Data and analytics recruitment is the use of tangible data and statistics to get insights into the recruitment process. Different metrics calculate different aspects of a recruitment process. This undoubtedly has a positive impact on improving the recruitment process.
How do you use data to improve the recruitment process?
Using data for recruitment enables employers to identify qualified candidates more quickly, save time and money, and find the best possible fit for their organization. Data can also be used to select applicants who are more likely to stay with the organization for a longer period, reducing turnover costs in the long term.
How can recruitment strategies be improved?
Recruitment strategies can be improved by developing a clear job description, using social media for recruiting, creating a positive candidate experience, sending feedback, etc.
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