5 Ways to Leverage Data to Make Better Recruiting and Hiring Decisions
Technology makes it simpler for us to assemble data on not only potential candidates but also the overall recruiting system. Picking the correct information, metrics and suitably following up on this Data can change and augment your employing cycle. You can harbor the power of data to fill positions in your company with the ideal individuals in a budget-friendly manner. As per Harvard Business Review, top-performing firms are five times most likely to utilize data to make a decision. It is a monumental positive development in how we generally assemble and use Data. Data is usually utilized as an enhancement for decisions, but it enables us to make these choices or decisions.
Importance of Recruitment Data
There is a directly proportional relationship between data and your company’s hiring process. It means that the more data you gather, the more the hiring process improves. It becomes significantly easier to attract appropriate candidates for the position and cuts down the costs of this process. Below are five ways to leverage data to make better recruitment and hiring decisions.
1. Speeding up the process
Time is money, and some hiring leaders fail to recognize that. Some organizations have a detailed, stretched-out hiring process, which increases spending and time to fill that position. No job position should be open for a longer duration. A typical recruitment process looks like this-
- Application submission
- Initial screening
- Phone interview
- Onsite interview
Review these steps to recognize and understand the errors in your hiring cycle by using the collected data. Find a solution for the delay and streamline the process.
2. Cost per hire
It can be divided into two categories, and they are-
- External costs include marketing and advertising of open job positions, job fairs/event fees, travel expenditure, background checks, and interviews.
- Internal costs include recruiting staff (salary), recruitment professional development, and recruitment-related office expenses.
Evaluate the cost per hire against the number of vacancies and use that precisely allocate budget to the recruitment staff and process. You can also consider the salary range for the positions your organization is hoping to fill and gauge that against market data.
3. Applicant data tracking
Start tracking data at the beginning of the application process. This will help you answer several questions like
- Why are candidates dropping out at the beginning of the process?
- Why is the applicant pool limited?
- After looking at the job description, how many candidates don’t apply? etc.
These questions will give you valuable data that gives you insight into the faults in your employment hiring cycle.
4. Get ahead of your
Use your collected data to calculate the average drop-out rate, hiring rate, pay range, etc. Compare it against the market benchmark and get ahead of your competitors. All of the above metrics will help you streamline this process and hire top-notch candidates for your firm.
5. Expand your talent search
Modern technology is so advanced that it can tell you how applicants find out about your job posting? Which advertising technique advances your talent hunt? Is word-of-mouth a better marketing strategy than referrals and social media advertising? HR leaders can use this Data to widen their applicant pool and make it diverse or inclusive.