Recruitment is a process where there is no scope of mistakes. For this reason, companies assign expert hiring managers to help them find the best talent in the industry. When a decision has to be made in any part of the business structure, it is ideal to use data and recruitment analytics. Using such measures, streamline the hiring process and improve the hiring quality.
If you are reading the term, Recruitment Analytics, for the first time, then this post will help you gain insights about it. Also, you can learn why recruitment analytics has become an integral part of recruiting process and how it can help recruiters make better hires.
What is Recruitment Analysis?
Recruitment analysis considers a variety of measurements to track the recruitment, identification, and hiring of candidates with an aim to analyze and evaluate the effectiveness of the process involved. Recruitment analysis is practiced to identify key issues within the recruitment process so that necessary improvements can be made.
In-house recruiters, third-party recruiters, and human resource professionals, all perform recruitment analysis to various degrees.
Why You Need Recruitment Analytics?
Recruitment Analytics is concerned with having a system to track, measure, collate, and analyze employee and candidate so that well-informed and better hiring decisions are made. The analytics help not just in recruitment process, but also in offering unique opportunities to the current talent pool to improve employee retention.
Here are some reasons why recruiters and hiring experts must ditch the old school hiring techniques and move onto data-based recruiting.
- Analytics offer objective visibility, the value and effectiveness of the recruitment activities.
- With the help of analytics, recruiters can keep track of candidates with high-potential, enabling you to actively nurture the possible future hires.
- You can create a robust pool of talent, or a permanent record of the hires or candidates, which can come back to you.
- It unlocks the potentials to learn from and improves hiring process.
- It allows proactive recruitment. This is essential to drive better and timely hiring decisions.
- It allows you to know about candidates that are high performers and those who may quit the job early.
But these are not the only reasons to practice Recruitment Analytics. The most prominent reasons are as follows:
Makes Sense of Data:
It is not enough to connect the outside data. More important is to ensure that the data collected is understandable and can help you combat most of the hiring challenges. Analytics makes it simpler to categorize and understand the collected data.
When data makes sense, it becomes easier to formulate additional hiring metrics, which matter the most like cost per hire, acceptance rate, and diversity. Also, multi-tenant solutions enable recruiters to hold data at a local level and work with local privacy laws. It further helps capture overall business intelligence and align it with talent acquisition efforts.
Efficiently Tackles Critical Recruitment Metrics:
The three crucial recruitment metrics are
- Right hire
- Time to hire
- Quality of candidate experience.
They are greatly recognized as 3 major recruitment metrics and recruiters are expected to address them faster with remarkable improvements.
It is vital that you offer job requirements to the right candidate without any limitations. When the candidates respond back, you must be able to respond them immediately. Also, you must be able to search and attract most qualified candidates and nurture those individuals like valued customers.
Remember, you are not competing to hire fast, your aim must be to hire the best within stipulated time period.
Create and Share Insights in Real-Time:
There is no point of creating and storing data if it stays intact in email folders or spreadsheets only. The data gathered by you must be used for real-time analysis, informed decision making and reporting.
It must help in flexible search and to make guided hiring decisions. Analytics can also lend a way to reduce unconscious bias in the hiring decisions by finding candidates suitable to prioritized criteria. It must assess the same as per calibrated and required key metrics.
Boost Candidate Engagement:
In addition to getting insights about the candidate you source, it is essential to engage them and keep a record of candidates that will drive the future using professional and social network analytics.
Analytics help recruiters to interact with this talent and enhance candidate engagement through machine learning and listening. This helps to build relationships as per candidate’s preferences. Moreover, analytics can help you deliver video based interactions for candidates who prefer to use this platform.
Measure as well as Optimize Talent Sourcing:
Sourcing talent has evolved over the years. It is no more related to placing ads in the magazine or newspaper. One also has to participate in live recruiting events and hope for the best. Around 90% of companies are presently using online digital networks and social networks to find, engage, and analyze talent.
It is but equally important to measure and review performance of such networks in terms of ultimate new hires and number of applications. Network sources, which offer the best hire quality and number of candidates, can be prioritized during the future searches.
Recruitment Analytics to Improve the Hiring Process:
A recruitment analytics system can save you lots of headache as an employer. If you are worried about acquiring the best talent, in and out of new employees, or retaining the existing talent, this tool can bring the best solutions forward.
Here learn how recruitment analytics can improve the hiring process.
Helps to Find the Right Talent:
Analytics and data help companies to find the best potential candidates right from the first stage of hiring. It makes it easier to measure soft-skills using data supported with algorithms and tailored to be used around the work culture of the company.
Using such data, recruiters can evaluate candidates for specific skills needed to grow and excel within the company. Moreover, the data is useful for evaluating the turnover risk of candidate and that too in very short time span. Once the prospects are shortlisted, the organization can move ahead with face-to-face interviews and hire the best fit for the job.
Being a recruiter, you must be aware how intense sourcing can be in order to find the best talent. Analytics take this to a step ahead by helping recruiters gain more insights based on each source, being used to find candidates.
Analytics not only help in mining data from social media websites, job portals, and more, but also give insights about candidate’s preferences such as physical locations, skills, expertise, and many others. Streamlining data and sourcing together help recruiters yield better results. This way, overall quality of hiring and organizational workforce is improved to a great extent.
Gather Data Related to Performance:
The latest data mining solutions let recruiters evaluate the satisfaction levels of new employee right from day one. It offers a live view to see whether the new crew is able to meet the respective job standards or not.
It is also useful to measure the overall engagement of employee that give signals if there are turnover risks involved. The data help you predict if an employee can become obsolete, or quit the job soon. Timely actions can be taken using analytics, and hence, such issues can be avoided.
Assess Complete Recruitment Experience:
New hires rate organizations on the basis of different metrics. If you too are concerned about how new employees would rate the orientation and training of your organization, data can present you answers for the same.
Analytics and data are useful to identify as well as communicate flaws within the boarding process of HR team, hence fixing them up at earliest. By addressing all such issues from the first stage, it is possible to avoid future problems and complexities.
Fine Tunes Profile:
When hiring team is clear about the kind of personalities and skills needed for a job, they would evaluate the candidate for the same. This would result in further optimization and streamlining of the process that eventually enhances the quality of candidates shortlisted for the profile.
If data is used and the process is practiced correctly, profile tuning is able to deliver excellent results.
Identifies the Best Sources of Candidates:
It is only half the battle to get an idea of what kinds of candidates are needed. A major part of it lies in determining where they come from. Data can be used to find out the sources for best performers. Whether it is social media or job listing, you can gain an idea about it and push your focus in that direction.
Also, it can be used to identify the sources with the biggest turnover rates. By taking necessary actions, you can gain a cost-effective and efficient recruitment process and at the same time improve quality of hires. Most importantly, the time saved can be used in other fruitful functions of the company.
Helps to Assess the Market Trends:
When you are hiring a new talent, a major role is being played by the market trends. Based on the demand for numerous jobs in the market, you can tweak the hiring process to gain improved efficiency.
Assessing the market trends can offer you insights about the currently available jobs. It also helps you know about the companies looking for candidates in such roles. If you are a staffing agency, analytics and data are useful to find potential candidates, which are more likely to convert. Having data intact makes the market analysis process much easier and simpler.
Recruiting Metrics You Should Know About:
A quality hire is one that ranks high in most of the recruiting metrics. These metrics are useful measurements that recruiters track and assess the success of their hiring process. They also help to optimize candidate hiring process for a company. Such metrics aid to evaluate process of recruiting and let an organization know whether it is recruiting the correct people or not.
Whether an organization is big or small, it is of utmost importance to make right hiring decisions. It is because only a good hire can lead to massive return on investment.
So, here check the most important recruitment metrics that hiring managers must consider ensuring they make a quality hire.
Time to Hire:
Also known as ‘time to accept, this metric is related to the time duration that a candidate takes to approach and accept the job offer. It estimates the time someone takes to go through the hiring process after they have applied.
This metric is a strong indication of how a recruitment team performs.
Time Taken to Fill the Job:
The next metric is the time taken to search and recruit a novel candidate. It is often estimated by the time duration between publishing a position and hiring a candidate. This particular metric is impacted by demand and supply ratios for particular jobs.
The metric is of great support to plan business and provides an authentic scenario for the recruiter to analyze the time taken to draw a substitute for departed employee.
Mostly, this metric positively affects the entire recruiting team because it implies less instability and overtime.
Initial Attrition or Attrition in the First Year:
It is a crucial metric that indicates overall success of hiring. Candidates, who fail to work properly or leave the job in the very first year, primarily cost lots of expenses to the organization. Depending on the attrition, it is manageable or become unmanageable.
Managed attrition is one when the employee is not able to work productively and hence is fired by the employer. Alternatively, unmanaged attrition is one when an employee leaves by his own will. Managed attrition occurs mainly because of bad fit in the team or bad performance.
Unmanaged attrition occurs because of unworkable expectations that eventually result in candidate quitting the job. It may also occur because of a mismatch hiring.
It is one of the most important metric that tracks the sources attracting new hires to your company. With this metric, recruiters can keep track of the efficacy of varying recruiting channels.
Some of the rich sources of hire are career’s page, sourcing agencies, job boards, and social media.
Satisfaction of Hiring Manager:
Another vital recruiting metric is the quality of hire. It is a successful recruiting metric. A recruiter satisfied with new candidates in his team is likely to perform well and is a perfect fit in the team. A high measurement of this metric mean candidate is a successful hire.
This metric is measured by the performance rating of someone. It indicates the performance of the candidate during initial years. Candidates that gained high performance rating indicate the hiring success and the candidates with low-performance ratings gain its opposite.
The low performance in first year indicates bad hires. If there is even one bad hire, it can cost the company huge expenses both directly and indirectly. When this metric is combined with the platform that has helped in sourcing candidate, it is possible to measure quality of sourcing channel as well.
Quality hire further helps in measuring the success ratio. This ratio of success divides amount of hires performing well to total number of hired candidates. A high success ratio implies that most of the candidates are performing well.
Applications Received For Every Opening:
Also called as applicants per hire, this metric is related more about the job popularity. When an opening receives large number of applicants, it indicates high demand for job in that specific area.
This metric is an indicator of suitable candidates and broad job description. A narrow job description helps refine the criteria and helps to reduce the number of applicants or suitable candidates.
Job Satisfaction of Candidates:
The job satisfaction of a candidate tracks whether the set expectations during recruiting process match realistic expectations or not. A candidate with low level of job satisfaction implies mismanaged expectations or incomplete descriptions.
It is possible to manage the lower score by offering a genuine job review. It aids to present the negative as well as positive aspects of the job to candidates, hence, creating a realistic review.
Cost Per Hire:
This is an important key metric for every organization. With this metric, the company measures the total cost invested in hiring a candidate to total number of hires.
There are multiple cost structures for cost per hire that can be segregated by external and internal cost. Quantifying this metrics help to calculate the total cost of recruitment.
This ratio is total candidates hired divided by total sum of candidates. It is also known as ‘submittals to the hire ratio.’
The ratio of selection is quite similar to number of applications received for every opening. When a big amount of candidates apply to an opening, the ratio is 0. With this ration, recruiters can gain information on performance of various assessment tools. Moreover, it is useful to measure the efficacy of a particular selection as well as recruitment system.
Acceptance Rate of Offer:
This metric is related to number of candidates who have successfully accepted the job offer to total number of candidates who were offered the job. A lower acceptance rate indicates possible compensation problems.
A company experiencing such problems may also have issues in the recruitment process, and hence, results in refused job offer.
When considering recruiting metrics, this metric must not be overlooked. This metric is the way that job seekers consider as recruitment employer and onboarding process. It is often measured by utilizing the survey process.
The survey process utilizes tools and help recruiters to measure the key components so that candidate experience can be removed.
Completion Rate of Application:
The rate of application completion is highly interesting for the organization with the elaborated online recruiting systems. Big corporate firms need applicants to manually provide the CV in the systems before they apply for the job.
High drop-out within the process indicates problems within the procedure such as incompatibility of browser with unfriendly user interface or issues with application system.
Total Percentage of Open Positions:
The percentage of positions opened as compared to the total number of positions applied to entire organization or specific departments. If the percentage is high, it indicates high demand or low supply in the labor market.
Time to Productivity:
Also called as optimum productivity level, this metric measure the duration people take to speed up and deliver productive results. The time is measured from the first day of hire to the time when employee completely contributes to the company.
According to the Oxford Economics, an average time needed by a new employee to reach productivity level is 28 weeks. The time taken by employees within the industry is less as compared to those hired from outside.
Cost to Reach Optimum Level of Productivity:
This metric measures the cost of getting someone to speed up. It includes costs like training cost, onboarding cost, on-the job training costs, cost of workers and supervisors involved. Mostly, the employee salary is also included to measure this metric.
Cost of Sourcing Channel:
It is also possible to measure the efficiency cost of varying sourcing channels. It includes the money spent on ads and on various sourcing platforms.
The cost of advertisement is divided by total number of visitors who applied to the job opening.
Effectiveness of Sourcing Channel:
With this metric, it is possible to estimate the conversions for every channel. It compares the impression percentage for a position to percentage of applicants. It lets you assess efficacy of distinct channels.
One of the easiest ways to practice this is utilizing Google Analytics. It tracks from where people who checked the job position on your site.
Recruitment analytics is a must tool for modern recruiters. It offer hiring managers with many benefits and is an effective way to lead to quality hire. With the help of analytics, it is also possible to measure most of the recruitment metrics.
Hence, adopt this technology now before your competitors successfully hire the best talent pool.