With data analytics, we can collect and interpret data to help us predict better ways to source, assess, and select candidates. This enables us to hire more effectively and efficiently.
Here are five important ways data analytics help you hire better:
1) Creating benchmarks for candidates
Data analytics can be great for evaluating new candidates. You can pick out top performers from the company, identify their hard and soft skills, and set these as a benchmark for new talent. This way, you’ll know exactly what to look for and pick the right fit for the job and the company.
2) Know where to source your candidates
Analytics can help you prioritize the platform that gives you the best return on your investment. You can analyze the quality and quantity of applications from various job boards and post jobs accordingly. As a result, you avoid wasting resources on platforms that won’t bring in high-quality candidates. Plus, you’ll improve cost per hire and time to hire.
3) Set key performance indicators
You’ll need certain metrics to help you measure your hiring success. These are called your key performance indicators (KPI). Setting goals against your KPI can help you strategize and understand where you need to direct your hiring efforts.
4) Minimize bias
A diverse workforce can significantly benefit any company. Effective data analysis can help your hiring team evaluate candidate skills and qualifications more objectively and reduce inherent bias. It can also help you analyze your company’s existing demographics and set better diversity goals for your organization.
Check out five things you can do to reduce hiring bias
5) Improve time and cost to hire
When you start analyzing your recruitment metrics, you can find and address process inefficiencies. This way, you can improve your quality of hire and get the best ROI on your recruitment process.
Next, let’s discuss four important hiring metrics.
1) Number and quality of applicants
You can assess and adjust your recruitment process based on the number and quality of applicants you get for your hiring process. Too many low-quality applicants can be the result of a vague job description. If a lot of candidates abandon the application process, it could mean that the process is too complex.
2) Applicant-to-interview ratio
You can better understand what to look for in a candidate by measuring the applicant-to-interview ratio. Using proper screening and assessment tools to analyze patterns can help you improve this part of the hiring process.
3) Offer-to-acceptance ratio
It is crucial to understand this metric, as it can tell you if you need to reevaluate major factors that influence how you attract and retain talent. This might include offering a more competitive salary, revising your employee value prepositions (EVPs), or improving the overall candidate experience.
4) Time and cost per hire
Decreasing the overall time to hire most often lowers the cost per hire, and this can be beneficial when it comes to reducing company expenses. By analyzing the steps of your hiring process, you can discover bottlenecks and make changes accordingly.
Implementing data analytics
Recruitment dashboards and applicant tracking systems can help track data, interpret patterns, address bottlenecks, and give actionable insights on ways to improve your hiring process.
Gathering enough data from different sources is key to identifying trends. Be sure to clearly define the metrics that you would like to analyze and collect the appropriate data.
Recruiters can proactively plan targets, deadlines, and budgets using data analytics.
Zoho Recruit has a customizable dashboard that tracks the candidate’s journey through the hiring pipeline. Our software’s advanced analytics feature provides built-in visual reports and enables you to sync candidate data from other platforms. You can also develop and analyze reports with stakeholders to devise the perfect recruitment strategy for your company.
