How to give value to Human Resources with Data-driven recruiting
The recruiting process isn’t always straightforward, and for the recruiter, finding the ideal candidate can become really complex. For those who are fond of traditional techniques, making “gut” decisions can be a tricky choice and, over time, prove to be a bad investment for the company.
The recruiter is faced with a very diverse candidate pool, with people who do not always meet the requirements of the job description and with a mix of skills that is not indifferent. That’s why he needs valid and reliable indications to guide him through the Talent Acquisition process and maximize the chances of obtaining the desired effect: hiring the right candidate.
Big Data is the Ariadne’s thread that the recruiter aims to follow within the search and selection process, putting into practice a Data-driven recruiting strategy.
What is Data-driven recruiting?
Data-driven recruiting is a form of “intelligent” management of human resources that makes automation, specifically Big Data, the factor on which to build the recruiting strategy. It is an approach that uses techniques, technologies and data to organize, monitor and finally analyze the results of the search and selection process.
Integrating Big Data into the management of human resources means that recruiters can be guided towards decisions and choices that are consistent with their objectives and, by extension, with those of the company.
Today, there is a growing number of companies that are developing projects that could be defined as not only data-driven, but also data-centric. According to a study conducted by PoliMi’s Big Data Analytics & Business Intelligence Observatory, the Big Data market in 2019 is growing steadily and has reached a value of 1.7 billion euros.
How to use Big Data for recruitment strategy
Big Data can be used to build a recruitment strategy that aligns with the goals of your company culture. The advantage is not only measured in terms of efficiency, accuracy and cost monitoring of the recruiting campaign. Data allows us to have a holistic view of the candidate’s profile that goes well beyond the analysis of the CV and the classic cover letter.
But what kind of data are we talking about?
We are dealing with structured and unstructured data: in addition to the data extracted from the CV and the schematic data, we add information related to online publications, social activities, photos and videos. In addition to this, the management of applications through special management platforms allows us to have a history of the candidate’s working life, now an integral part of the company database. We will have information on his previous applications, monitoring his “pit stops” within the candidate journey, feedback, successes and failures, coming into possession of not only quantitative but also qualitative data. All of this allows the recruiter to focus on certain crucial aspects and build an ad hoc campaign to:
- Accelerate the selection process
- Reduce recruitment costs
- Identify the best recruitment channels in terms of ROI
- ask the right questions to the right candidates supported by predictive analytics
Technologies such as ATS (Applicant Tracking Systems) help process HR Analytics data to plan the recruitment process. In addition to this and other technologies (machine learning and artificial intelligence), it is important to identify key KPIs (Key Performance Indicators): metrics through which to guide the recruiting process.
The Benefits of Data-driven Recruiting for Talent Acquisition
In 2019, there was a 23% growth in Big Data Analytics, meaning that more companies are recognizing the benefits of a data-driven strategy.
Let’s make a assumption. Investing in the Big Data sector implies, by necessity, the presence of resources with special skills: talents are needed. This is further confirmation that a data-driven approach has positive effects on Talent Acquisition.
But let’s see, in general, what are the main benefits of using HR Analytics:
The multiple applications. The main application of a data-driven approach is related to Talent Acquisition, the search for new talent. But don’t forget the impact it can have on employee engagement and retention. Data analysis allows you to strengthen the company’s bond with employees by designing plans that are close to their needs and taking preventive action to better manage company turnover.
Reduce selection time and costs. Following the data means orienting the search and selection process towards certain requirements and skills, foreshadowing the ideal candidate. Optimizing the process allows you to build a targeted search, in depth, on what turn out to be the best channels to get in touch with the right candidates. In this sense, by following pre-established metrics, you reduce the time you have to spend searching for a candidate (by eliminating redundant aspects) and, at the same time, also the cost of selection (quantified not only in economic terms, but also in terms of incorrect hiring).
Improve the quality of recruitment by supporting the growth of corporate identity. One of the most important elements for a company is to create a strong employer identity. When it comes to human resource management, it is essential to develop a recruitment strategy that is consistent with your corporate culture. Credibility is fundamental, and it is the talents themselves who achieve it. In this sense, it is becoming a necessity to integrate figures such as Data Analysts, Data Engineers and Data Scientists into your team, in order to take the greatest advantage of data analysis.
Limit “gut” decisions in favor of those supported by data. A data-driven recruiting strategy has the advantage of eliminating a number of variables from the selection process that sometimes compromise recruiter decisions. The data leads to a “non-biased” evaluation of the candidate, preventing the intervention of factors (emotions or bias) that can undermine the objectivity of the choice.
Improve the candidate experience. It is important to make the candidate journey enjoyable, simplify the process, in order to create a relationship with candidates, build their loyalty, and decrease the churn rate.
A data-driven recruiting strategy seems to be a valid opportunity for companies that want to protect themselves from financial losses and failed hires. Although data is a tool whose effectiveness can be measured, don’t forget that the final choice still rests with the recruiter, who is now equipped with an extra gear to get the job done successfully.
Digital Marketing presso Inrecruiting